WORLD TRADE  
ORGANIZATION  WT/REG184/1 
11 February 2005 
 
 (05-0563) 
Committee on Regional Trade Agreements Original:   English 
  
FREE TRADE AGREEMENT BETWEEN THE UNITED STATES AND AUSTRALIA
* 
 
  The following communication, dated 22 December 2004, is being circulated at the request of 
the Delegations of the United States and Australia.  
_______________ 
 
 
UNITED STATES-AUSTRALIA FREE TRADE AGREEMENT
 
 
PREAMBLE 
  The Government of the United States of America  and the Government of Australia  (“the 
Parties”), resolved to:   Reinforce  the longstanding ties of friends hip and cooperation between them; 
 
 Strengthen  their economic relations and further li beralize and expand bilateral trade and 
investment;   Establish  clear and mutually advantageous rules governing their trade and reduce the barriers 
to trade that exist between them; 
  Encourage  a closer economic partnership that will bring economic and social benefits, create 
new employment opportunities, and improve  living standards for their people; 
  Promote  a predictable, transparent, and consistent business environment that will assist 
enterprises to plan effectively and use resources efficiently; 
  Foster  creativity and innovation and promote str onger links between dynamic sectors of their 
economies;  
 Implement  this Agreement in a manner consistent  with their commitment to high labour 
standards, sustainable development,  and environmental protection; and 
  Build  on their rights and obligations under the WTO Agreement and other agreements to 
which they are both parties; 
 
 Have Agreed  as follows: 
                                                     
 
* The full text of the  Agreement is also available at the following URL Addresses: 
http://www.ustr.gov/Trade_Agreements/Bilatera l/Australia_FTA/Final_T ext/Section_Index.html  and  
http://www.dfat.gov.au/trade/ne gotiations/us_fta/final-text .   
 In addition, the Parties’ tariff schedules, services  market access reservations, and 26 letters related to 
the Agreement as well as material describing the agr eement and implementing measures are available on the 
websites cited above. WT/REG184/1 
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CHAPTER ONE: ESTABLISHMENT OF A FREE TRADE AREA AND DEFINITIONS 
 
Article 1.1 
 
General
 
 
1. The Parties to this Agreement, consistent with Article XXIV of GATT 1994 and Article V of 
GATS, hereby establish a free trade area in accord ance with the provisions of this Agreement. 
2. The Parties affirm their existing rights and ob ligations with respect to each other under 
existing bilateral and multilateral agreements to which both Parties are party, including the WTO 
Agreement. 
3. This Agreement shall not be construed to de rogate from any interna tional legal obligation 
between the Parties that entitles goods or services, or suppliers of goods or services, to treatment more favourable than that accorded by this Agreement. 
Article 1.2 
 
General Definitions
 
  For the purposes of this Agreement, unless otherwise specified:  1. Agreement on Textiles and Clothing  means the Agreement on Textiles and Clothing , 
contained in Annex 1A to the WTO Agreement; 
2. central government  or central level of government  means: 
(a) for the United States, the federal government; and 
(b) for Australia, the Commonwealth government; 
3. covered investment  means, with respect to a Party, an  investment in its territory of an 
investor of the other Party, in existence as of th e date of entry into force of this Agreement or 
established, acquired, or expanded thereafter; 
4. customs duty  includes any customs or import duty and a charge of any kind imposed in 
connection with the importation of a good, including any form of surtax or surcharge in connection with such importation, but does not include any: 
(a) charge equivalent to an internal tax impo sed consistently with Article III:2 of GATT 
1994 in respect of the like domestic good or in respect of goods from which the 
imported good has been manufactured or produced in whole or in part;  
(b) antidumping or countervailing duty that is  applied pursuant to a Party’s law; or 
(c) fee or other charge in connection with importation commensurate with the cost of 
services rendered; 
5. Customs Valuation Agreement  means the Agreement on Implementation of Article VII of 
the General Agreement on Tariffs and Trade 1994 , contained in Annex 1A to the WTO Agreement; 
6. days  means calendar days;  WT/REG184/1 
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7. enterprise  means any entity constituted or organized under applicable law, whether or not for 
profit, and whether privately-owned or governme ntally-owned or controlled, including any 
corporation, trust, partnership, so le proprietorship, joint venture, asso ciation, or similar organization; 
8. enterprise of a Party  means an enterprise constituted or organized under a Party’s law; 
9. existing  means in effect on the date of entry into force of this Agreement; 
10. GATS  means the General Agreement on Trade in Services , contained in Annex 1B to the 
WTO Agreement; 
11. GATT 1994  means the General Agreement on Tariffs and Trade 1994 , contained in Annex 
1A to the WTO Agreement; 
12. goods of a Party  means domestic products as these are understood in GATT 1994 or such 
goods as the Parties determine under the rules of orig in applied in the normal course of trade, and 
includes originating goods of a Party; 
13. government procurement  means the process by which a government obtains the use of or 
acquires goods or services, or any combination ther eof, for governmental purposes and not with a 
view to commercial sale or resale or use in the production or supply of goods or services for 
commercial sale or resale; 
14. Harmonized System  (HS) means the Harmonized Commodity Description and Coding 
System , including its General Rules of Interpretation, Section Notes, and Chapter Notes, as adopted 
and implemented by the Parties in their respective tariff laws; 
15. measure  includes any law, regulation, procedure, requirement, or practice; 
16. national  means a natural person referred to in Annex 1-A to this Agreement; 
17. originating  means qualifying under the rules of orig in set out in Chapter Five (Rules of 
Origin); 
18. person  means a natural person or an enterprise; 
19. person of a Party  means a national or an enterprise of a Party; 
20. regional government  or regional level of government  means, 
(a) for the United States, a state of the United St ates, the District of Colombia, or Puerto 
Rico; and 
(b) for Australia, a state of Australia, the Aust ralian Capital Territory, or the Northern 
Territory; 
21. Safeguards Agreement  means the Agreement on Safeguards , contained in Annex 1A to the 
WTO Agreement; 
22. service supplied in the exercise of governmental authority  means any service which is 
supplied neither on a commercial basis, nor in competition with one or more service suppliers; 
23. SPS Agreement  means the Agreement on Application of Sanitary and Phytosanitary 
Measures , contained in Annex 1A to the WTO Agreement; WT/REG184/1 
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24. state enterprise  means an enterprise that is owned, or  controlled through ownership interests, 
by the central or a regional government of a Party; 
25. TBT Agreement  means the Agreement on Technical Barriers to Trade , contained in Annex 
1A to the WTO Agreement; 
26. territory  means, with respect to a Party, the territo ry of that Party as set out in Annex 1-A to 
this Agreement; 
27. textile or apparel good  means a good listed in the Annex to the Agreement on Textiles and 
Clothing; 
28. TRIPS Agreement  means the Agreement on Trade-Related Aspects of Intellectual Property 
Rights , contained in Annex 1C to the WTO Agreement; 
29. WTO means the World Trade Organization; and 
30. WTO Agreement  means the Marrakesh Agreement Establishing the World Trade 
Organization , done on April 15, 1994. 
 
ANNEX 1-A 
 
Certain Definitions
 
  For the purposes of this Agreement:  1. national  means: 
(a) with respect to Australia, an Au stralian citizen as defined in the Australian 
Citizenship Act 1948 , or a permanent resident; and 
(b) with respect to the United States, a national of the United States as defined in Title III 
of the Immigration and Nationality Act  or a permanent resident; and 
2. territory  means: 
(a) with respect to Australia, the territory  of the Commonwealth of Australia: 
(i) excluding all external territories other th an the Territory of Norfolk Island, 
the Territory of Christmas Island, the Territory of Cocos (Keeling) Islands, 
the Territory of Ashmore and Cartier Is lands, the Territory of Heard Island 
and McDonald Islands, and the Co ral Sea Islands Territory; and 
(ii) including Australia’s territorial sea, contiguous zone, exclusive economic 
zone, and continental shelf; and 
(b) with respect to the United States: 
(i) the customs territory of the United St ates, which includes the 50 states, the 
District of Columbia, and Puerto Rico; 
(ii) the foreign trade zones located in th e United States and Puerto Rico; and  WT/REG184/1 
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(iii) any areas beyond the territorial seas of the United States within which, in 
accordance with international law and its domestic law, the United States may exercise rights with respect to th e seabed and subsoil and their natural 
resources. 
 
CHAPTER TWO: NATIONAL TREATMENT AND MARKET ACCESS FOR GOODS 
 
Article 2.1 
 
Scope And Coverage
 
 
 Except as otherwise provided, this Chapter applies to trade in goods of a Party.   
Section A : National Treatment
 
 
Article 2.2 
 
National Treatment  
  Each Party shall accord national treatment to the goods of the other Party in accordance with 
Article III of GATT 1994, including its interpretativ e notes. To this end, Article III of GATT 1994 
and its interpretative notes are incorporated into and made a part of this Agreement, subject to Annex 
2-A (Application of Chapter 2).  
Section B : Tariffs
 
 
Article 2.3 
 
Elimination Of Customs Duties  
 1. Except as otherwise provided in this Agreement,  each Party shall progressively eliminate its 
customs duties on originating goods of the othe r Party in accordance with Annex 2-B (Tariff 
Elimination). 
2. Neither Party may increase an existing custom s duty or introduce a new customs duty on 
imports of an originating good, other than as perm itted by this Agreement, subject to Annex 2-A 
(Application of Chapter 2). 
Article 2.4 
 
Customs Value
 
  The Parties shall apply the provisions of the Customs Valuation Agreement for the purposes 
of determining the customs value of goods traded between the Parties. 
 
Article 2.5 
 
Temporary Admission
 
 1. Each Party shall grant duty-free temporary admi ssion for the following goods, imported by or 
for the use of a resident of the other Party: WT/REG184/1 
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(a) professional equipment, including software  and broadcasting and cinematographic 
equipment, necessary for carrying out the bus iness activity, trade, or profession of a 
person who qualifies for temporary entry pursu ant to the laws of the importing Party; 
(b) goods intended for display or demonstration at exhibitions, fairs, or similar events, 
including commercial samples for the solicita tion of orders, and advertising films and 
recordings; and 
(c) goods temporarily admitted for sports purposes,  
regardless of their origin. 
 2. Neither Party may condition the duty-free temporary admission of a good referred to in 
paragraph 1, other than to require that such good: 
(a) be used solely by or under the personal s upervision of a national or resident of the 
other Party in the exercise of the business activity, trade, or profession of that person; 
(b) not be sold, leased, or consumed while in its territory; 
(c) be accompanied by a security in an amount no greater than the charges that would 
otherwise be owed on entry or final impor tation, releasable on exportation of the 
good; 
(d) be capable of identification when exported; 
(e) be exported on or before the departure of that  person or within such other period as is 
reasonably related to the purpose of the temporary admission, not to exceed three years after the date of importation; 
(f) be imported in no greater quantity than is reasonable for its intended use; and 
(g) be otherwise admissible into the Party’s territory under its laws. 
3. If any condition that a Party imposes under paragraph 2 has not been fulfilled, the Party may 
apply the customs duty and any other charge that  would normally be owed on entry or final 
importation of the good. 
4. Each Party, through its customs authorities, shall adopt procedures providing for the 
expeditious release of the goods described in paragr aph 1. To the extent possible, when such goods 
accompany a national or resident of the other Party seeking temporary entry, and are imported by that 
person for use in the exercise of a business activity, tr ade, or profession of that person, the procedures 
shall allow for the goods to be released simultaneou sly with the entry of that person subject to the 
necessary documentation required by the customs authorities of the importing Party. 
5. Each Party shall, at the request of the person concerned and for reasons  deemed valid by its 
customs authorities, extend the time limit for temporary admission beyond the period initially fixed. 
6. Each Party shall permit temporarily admitted goods to be exported through a customs port 
other than that through which they were imported. 
7. Each Party shall relieve the importer of liabilit y for failure to export a temporarily admitted 
good on presentation of satisfactory proof to the Party’s customs authorities that the good has been 
destroyed within the original time limit for temp orary admission or any lawful extension. Prior  WT/REG184/1 
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approval will have to be sought from the customs authorities of the importing Party before the good 
can be so destroyed. 
8. Subject to Chapters Ten (Cross-Border Trad e in Services) and Eleven (Investment): 
(a) each Party shall allow a container used in inte rnational traffic that enters its territory 
from the territory of the other Party to exit its  territory on any route that is reasonably 
related to the economic and prompt  departure of the container;  
(b) neither Party may require any bond or impose any penalty or charge solely by reason 
of any difference between the container’s por t of entry and its port of departure; 
(c) neither Party may condition the release of an y obligation, including any bond, that it 
imposes in respect of the entry of a containe r into its territory on its exit through any 
particular port of departure; and 
(d) neither Party may require that the carrier br inging a container from the territory of the 
other Party into its territory be the same carri er that takes the container to the territory 
of the other Party. 
Article 2.6 
 
Goods Re-Entered After Repair Or Alteration  
 1. Neither Party may apply a customs duty to a good,  regardless of its origin, that re-enters its 
territory after that good has been exported temporarily from its territory to the territory of the other Party for repair or alteration, regardless of whether the repair or alteration could be performed in its 
territory. 
2. Neither Party may apply a customs duty to a good, regardless of its origin, imported 
temporarily from the territory of the other Party for repair or alteration.  
3. For the purposes of this Article: 
(a) the repairs or alterations shall not destroy the essential characteristics of the good, or 
change it into a different commercial item;  
(b) operations carried out to transform unfinishe d goods into finished goods shall not be 
considered repairs or alterations; and 
(c) parts or pieces of the goods may be subject to repairs or alterations. 
Article 2.7 
 
Duty-Free Entry Of Commercial Samples Of Neg ligible Value And Printed Advertising Materials
 
  Each Party shall grant duty-free entry to comme rcial samples of negligible value, and to 
printed advertising materials, imported from the territo ry of the other Party, regardless of their origin, 
but may require that: 
 
(a) the samples be imported solely for the solic itation of orders for goods of, or services 
provided from the territory of, the other Party or a non-Party; or  WT/REG184/1 
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(b) the advertising materials be imported in packets that each contain no more than one 
copy of each such material and that neither those materials nor packets form part of a 
larger consignment. 
Article 2.8 
 
Waiver Of Customs Duties
 
 1. Neither Party may adopt a new waiver of custom s duties, or expand with respect to existing 
recipients or extend to any new recipient the app lication of an existing waiver of customs duties, 
where the waiver is conditioned, explicitly or implicitly, on the fulfilment of a performance 
requirement. 
2. Neither Party may condition, explicitly or imp licitly, the continuation of any existing waiver 
of customs duties on the fulfilment of a performance requirement. 
3. This Article shall not apply to dr awback or duty deferral programs.  
Section C : Non-Tariff Measures
 
 
Article 2.9 
 
Import And Export Restrictions  
 1. Except as otherwise provided in this Agreement,  neither Party may adopt or maintain any 
prohibition or restriction on the importation of an y good of the other Party or on the exportation or 
sale for export of any good destined for the territory  of the other Party, except in accordance with 
Article XI of GATT 1994, including its interpretative notes, and to this end Ar ticle XI of GATT 1994, 
including its interpretative notes, is incorporated  into and made a part of this Agreement.  
2. The Parties understand that the rights and obligati ons incorporated by paragraph 1 prohibit, in 
any circumstances in which any other form of rest riction is prohibited, import licensing conditioned 
on the fulfilment of a performance requirement, expor t price requirements, and, except as permitted in 
enforcement of countervailing and antidumping or ders and undertakings, import price requirements. 
3. In the event that a Party adopts or maintains a prohibition or restriction on the importation 
from or exportation to a non-Party of a good, noth ing in this Agreement shall be construed as 
preventing the Party from: 
(a) limiting or prohibiting the importation from the territory of the other Party of such 
good of that non-Party; or 
(b) requiring as a condition of export of such good of the Party to the territory of the 
other Party, that the good not be re-exported to the non-Party, directly or indirectly, 
without being consumed in the territory of the other Party. 
4. Paragraphs 1 through 3 shall not apply to the measures set out in Annex 2-A. 
5. Nothing in this Article shall be construed as affecting a Party’s rights and obligations under 
the Agreement on Textiles and Clothing.  WT/REG184/1 
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Article 2.10 
 
Administrative Fees And Formalities  
 1. Each Party shall ensure, in accordance with Article VIII:1 of GATT 1994 and its interpretive 
notes, that all fees and charges of whatever character  (other than customs duties, charges equivalent to 
an internal tax or other internal charges applie d consistently with Article III:2 of GATT 1994, and 
antidumping and countervailing duties applied pursuant to a Party’s law), imposed on or in connection 
with importation or exportation, are limited in amount to the approximate cost of services rendered and do not represent indirect protection of domestic products or a taxation of imports or exports for 
fiscal purposes. 
2. Neither Party may require consular transacti ons, including related fees and charges, in 
connection with the importation of any good of the other Party.  
3. Each Party shall make available on the Intern et a current list of the fees and charges it 
imposes in connection with importation or exportation. 
Article 2.11 
 
Export Taxes
 
  Neither Party may adopt or maintain any duty, tax, or other charge on the export of any good 
to the territory of the other Party, unless such duty,  tax, or charge is adopted or maintained on any 
such good when destined for consumption in its territory. 
 
Section D : Other Measures
 
 
Article 2.12 
 
Merchandise Processing Fee  
  Neither Party may adopt or maintain a merchandise processing fee on originating goods. 
 
Section E : Institutional Provisions
 
 
Article 2.13 
 
Committee On Trade In Goods  
 
1. The Parties hereby establish a Committee on Trade in Goods, comprising representatives of 
each Party. 
2. The Committee shall meet on the request of either  Party or the Joint Committee established in 
Chapter 21 (Institutional Arrangements and Dispute Se ttlement) to consider any matter arising under 
this Chapter, Chapter Five (Rules of Origin), or Chapter Six (Customs Administration). 
3. The Committee’s functions shall include: 
(a) promoting trade in goods between the Parties; and 
(b) addressing barriers to trade in goods between the Parties, especially those related to 
the application of non-tariff measures, and, if appropriate, referring such matters to 
the Joint Committee for its consideration. WT/REG184/1 
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Section F : Definitions
 
 
Article 2.13 
 
Definitions  
 
 For the purposes of this Chapter:  1. advertising films and recordings  means recorded visual media or audio materials, consisting 
essentially of images and/or sound, showing the natu re or operation of goods or services offered for 
sale or lease by a person established or resident in the territory of a Party, provided that such materials 
are of a kind suitable for exhibition to prospectiv e customers but not for broadcast to the general 
public; 
2. commercial samples of negligible value  means commercial samples having a value, 
individually or in the aggregate as shipped, of not more than one U.S.  dollar, or the equivalent amount 
in Australian currency, or so marked, torn, perforated,  or otherwise treated that they are unsuitable for 
sale or for use except as commercial samples; 
3. consular transactions  means requirements that goods of a Party intended for export to the 
territory of the other Party must first be submitted to the supervision of the consul of the importing 
Party in the territory of the exporting Party for th e purpose of obtaining consular invoices or consular 
visas for commercial invoices, certificates of origin, ma nifests, shippers’ export declarations, or any 
other customs documentation required on or in connection with importation; 
4. consumed  means: 
(a) actually consumed; or 
(b) further processed or manufactured so as to resu lt in a substantial change in the value, 
form, or use of the good, or in the production of another good; 
5. drawback  means measures in which a Party refunds the amount of customs duties paid on a 
good imported into its territory, on condition that the good is: 
(a) subsequently exported to the territory of the other Party; 
(b) substituted by an identical or similar good expor ted to the territory of the other Party; 
(c) used as a material in the production of another good that is subsequently exported to 
the territory of another Party; 
(d) substituted by an identical or similar good used as a material in the production of 
another good that is subsequently exported to the territory of another Party; 
6. duty-free  means free of customs duty; 
7. duty deferral program  includes measures such as tho se governing foreign-trade zones, 
temporary importations under bond, bonded warehouses, and inward processing programs; 
8. goods intended for display or demonstration  includes their component parts, ancillary 
apparatus, and accessories; 
9. goods temporarily admitted for sports purposes  means:  WT/REG184/1 
 Page 11 
 
 
(a) sports requisites for use in sports cont ests, demonstrations, or training; and 
(b) for such events as deemed valid  by competent authorities,  
in the territory of the Party into w hose territory such goods are admitted; 
 10. import licensing  means an administrative procedure requiring the submission of an 
application or other documentation (other than  that generally required for customs clearance 
purposes) to the relevant administrative body as a pr ior condition for importation into the territory of 
the importing Party; 
11. performance requirement  means a requirement that: 
(a) a given level or percentage of goods or services be exported; 
(b) goods or services of the Party granting a waiver of customs duties or an import 
license be substituted for imported goods or services; 
(c) a person benefiting from a waiver of customs duties or an import license purchase 
other goods or services in the territory of the Party granting the waiver of customs 
duties or the import license, or accord a pref erence to domestically produced goods or 
services; 
(d) a person benefiting from a waiver of customs duties or an import license produce 
goods or supply services, in the territory of the Party granting the waiver of customs duties or the import license, with a given leve l or percentage of domestic content; or 
(e) relates in any way the volume or value of im ports to the volume or value of exports or 
to the amount of foreign exchange inflows; and 
12. printed advertising materials  means those goods classified in Chapter 49 of the Harmonized 
System, including brochures, pamphlets, leaflets , trade catalogues, yearbooks published by trade 
associations, tourist promotional materials, and pos ters, that are used to promote, publicize, or 
advertise a good or service, or are essentially intend ed to advertise a good or service, and are supplied 
free of charge. 
 
ANNEX 2-A 
 
Application Of Chapter Two
 
 
Section A-Measures of the United States  
 
 Articles 2.2, 2.3, and 2.9 shall not apply to:  
(a) controls by the United States on the export of logs of all species; 
(b) (i) measures under existing provisions of the Merchant Marine Act of 1920, 46 
App. U.S.C. § 883; the Passenger Vessel Act, 46 App. U.S.C. §§ 289, 292, 
and 316; and 46 U.S.C. § 12108, to the extent that such measures were mandatory legislation at the time of the accession of the United States to the General Agreement on Tariffs and Trade 1947  (“GATT 1947”) and have not 
been amended so as to decrease their conformity with Part II of GATT 1947; WT/REG184/1 
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(ii) the continuation or prompt renewal of a non-conforming provision of any 
statute referred to in clause (i); and 
(iii) the amendment to a non-conforming provision of any statute referred to in 
clause (i) to the extent that the amen dment does not decrease the conformity 
of the provision with Articles 2.2 and 2.9; and  
(c) actions by the United States authorized by the Dispute Settlement Body of the WTO. 
Section B – Measures of Australia
 
 
 Articles 2.2, 2.3, and 2.9 shall not apply to:  
(a) controls by Australia on the exports of  woodchips and unprocessed forest products 
(e.g., whole logs) sourced from native for ests outside Regional Forest Agreement 
regions, or plantation forests within Stat es where Codes of Practice have not been 
approved by the Australian Government, and Sandalwood ( Santalum spicatum ) 
sourced from any State, the Australian Cap ital Territory, or the Northern Territory; 
(b) controls on importation of second hand mo tor vehicles under Section 17A of the 
Motor Vehicles Standards Act of 1989  and the Motor Vehicles Standards Regulations 
of 1989 ; 
(c) wheat marketing arrangements under the Wheat Marketing Act 1989  and the Customs 
(Prohibited Exports) Regula tions 1958, as amended; 
(d) grain marketing arrangements under the New South Wales Grain Marketing Act 1991 
and Marketing of Primary Products  Act 1983, the South Australian Barley Marketing 
Act 1993 , the Western Australian Grain Marketing Act 2002  and Grain Marketing 
Regulations 2002, and the Queensland Grai n Industry (Restructuring) Act 1991, as 
amended; 
(e) sugar marketing arrangements under the Queensland Sugar Industry Amendment Act 
2000 , as amended; 
(f) rice marketing arrangements under the New South Wales Marketing of Primary 
Products Act 1983 , as amended; 
(g) horticulture export efficiency licensing arrangements under the Horticulture 
Marketing and Research and Development Services Act 2000 and Horticulture 
Marketing and Research and Development (Export Efficiency) Regulations 2002,  as 
amended; 
(h) the provisions of and measures under the Livestock Export (Merino) Orders , made 
under the Export Control Act of 1982 , as amended; and 
(i) actions by Australia authorized by the Dispute Settlement Body of the WTO. 
  WT/REG184/1 
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ANNEX 2-B 
 
Tariff Elimination  
 1. Base Rates of Customs Duty
. Except as otherwise indicated, the base rates of customs duty 
set forth in this schedule reflect the HTSUS Column 1 General rates of duty in  effect January 1, 2004, 
for the United States and the general rates of duty in  Schedule 3 to the Australian Customs Tariff Act 
1995, in effect January 1, 2004, for Australia. 
2. Staging . Except as otherwise provided in a Party’ s Schedule attached to this Annex, the 
following staging categories apply to the elimination of duties by each Party pursuant to Article 2.3: 
(a) duties on goods provided for in the items in staging category A shall be eliminated 
entirely and such goods shall be duty-free on the date this Agreement enters into 
force; 
(b) duties on goods provided for in the items in  staging category B shall be removed in 
equal annual stages beginning on the date this Agreement enters into force, and such 
goods shall be duty-free, effective January 1 of year four; 
(c) duties on goods provided for in the items in  staging category C shall be removed in 
equal annual stages beginning on the date this Agreement enters into force, and such 
goods shall be duty-free, effective January 1 of year eight; 
(d) duties on goods provided for in the items in staging category D shall be removed in 
equal annual stages beginning on the date this Agreement enters into force, and such 
goods shall be duty-free, effective January 1 of year ten; and 
(e) goods provided for in staging category E shall continue to receive duty-free 
treatment. 
 
ANNEX 2-C 
 
Pharmaceuticals  
 1. Agreed Principles 
 The Parties are committed to facilitating high quality health care and continued improvements 
in public health for their nationals. In pursui ng these objectives, the Parties are committed to the 
following principles: 
 
(a) the important role played by innovative pharmaceutical products in delivering high 
quality health care; 
(b) the importance of research and developmen t in the pharmaceutical industry and of 
appropriate government support, includi ng through intellectual property protection 
and other policies; 
(c) the need to promote timely and affo rdable access to innovative pharmaceuticals 
through transparent, expeditious, and acc ountable procedures, without impeding a 
Party’s ability to apply appr opriate standards of quality , safety, and efficacy; and  WT/REG184/1 
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(d) the need to recognize the value of i nnovative pharmaceuticals through the operation 
of competitive markets or by adopting or maintaining procedures that appropriately 
value the objectively demonstrated ther apeutic significance of a pharmaceutical. 
2. Transparency
2C-1 
 To the extent that a Party’s federal healthcar e authorities operate or maintain procedures for 
listing new pharmaceuticals or indications for reimbursement purposes, or for setting the amount of 
reimbursement for pharmaceuticals, under its  federal healthcare programs, it shall:  
 
(a) ensure that consideration of all formal proposals for listing are completed within a 
specified time; 
(b) disclose procedural rules, methodologies, principles, and guidelines used to assess a 
proposal; 
(c) afford applicants timely opportunities to pr ovide comments at relevant points in the 
process; 
(d) provide applicants with detailed writte n information regarding the basis for 
recommendations or determinations regard ing the listing of new pharmaceuticals or 
for setting the amount of reimbursement by federal healthcare authorities; 
(e) provide written information to the pub lic regarding its recommendations or 
determinations, while protecting informati on considered to be confidential under the 
Party’s law; and 
(f) make available an independent review pro cess that may be invoked at the request of 
an applicant directly affected by a recommendation or determination. 
3. Medicines Working Group 
(a) The Parties hereby establish a Medicines Working Group. 
(b) The objective of the Working Group shall be to promote discussion and mutual 
understanding of issues relating to this Annex (except those issues covered in 
paragraph 4), including the importance of pharmaceutical research and development 
to continued improvement of healthcare outcomes.2C-2 
(c) The Working Group shall comprise officials of federal government agencies 
responsible for federal healthcare programs and other appropriate  federal government 
officials. 
                                                      
2C-1 Pharmaceutical formulary developm ent and management shall be considered to be an aspect of 
government procurement of pharmaceutical  products for federal healthcare ag encies that engage in government 
procurement. Government procurem ent of pharmaceutical products sha ll be governed by Chapter Fifteen 
(Government Procurement) and not the provisions of this Annex. 
2C-2 Nothing in this paragraph shall be construed as requiring a Party to review or change decisions 
regarding specific applications.  WT/REG184/1 
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4. Regulatory Cooperation 
 The Parties shall seek to advance the existi ng dialogue between the Australian Therapeutic 
Goods Administration and the U.S. Food and Drug Administration with a view to making innovative medical products more quickly available to their nationals.  
5. Dissemination Of Information 
 Each Party shall permit a pharmaceutical manufacturer to disseminate to health professionals 
and consumers through the manufacturer’ s Internet site registered in the territory of the Party, and on 
other Internet sites registered in the territory of  the Party linked to that site, truthful and not 
misleading information regarding its pharmaceuticals th at are approved for sale in the Party’s territory 
as is permitted to be disseminated under the Party’s laws, regulations, and procedures, provided that 
the information includes a balance of risks and bene fits and encompasses all indications for which the 
Party’s competent regulatory authorities have approved the marketing of the pharmaceuticals.  6. Definitions 
 For the purposes of this Annex:  
  federal healthcare program  means a health care program in which the Party’s federal health 
authorities make the decisions regarding matters to which this Annex applies. 
  
CHAPTER THREE: AGRICULTURE 
 
Article 3.1 
 
Multilateral Cooperation
 
 
1. The Parties shall work together to reach an  agreement on agriculture in the WTO that 
substantially improves market access for agricultural goods, reduces, with a view to phasing out, all 
forms of agricultural export subsidies, develops disciplines that eliminate restrictions on a person’s 
right to export, and substantially re duces trade-distorting domestic support. 
2. The Parties shall consult on agricultural issu es arising in the WTO and in other multilateral 
fora in which they both participate. 
Article 3.2 
 
Committee On Agriculture  
 
1. The Parties hereby establish a Committee on Ag riculture, comprising representatives of each 
Party. 
2. The Committee shall provide a forum for: 
(a) promoting trade in agricultural goods between the Parties; 
(b) addressing barriers to trade in agricultural goods; 
(c) conducting consultations between the Pa rties on agricultural export competition 
issues; and WT/REG184/1 
Page 16  
 
(d) considering any matters arising under this Chapter. 
3. The Committee shall meet at least once a year unless the Parties otherwise agree. 
4. The Committee shall report the results of  each meeting to the Joint Committee. 
Article 3.3 
 
Export Subsidies
 
 1. Except as provided in paragraph 2, neither Party may introduce or maintain any export 
subsidy on any agricultural good destined for the territory of the other Party. 
2. Where an exporting Party considers that a non-Party is exporting an agricultural good to the 
territory of the other Party with the benefit of e xport subsidies, the importing Party shall, on written 
request of the exporting Party, consult with the ex porting Party with a view to agreeing on specific 
measures that the importing Party may adopt to counte r the effect of such subsidized imports. If the 
importing Party adopts the agreed-upon measures, th e exporting Party shall refrain from applying any 
export subsidy to exports of such good to the territory of the importing Party. 
Article 3.4 
 
Agricultural Safeguard Measures
 
 1. Notwithstanding Article 2.3 (Elimination of Duti es), a Party may apply a measure in the form 
of an additional customs duty on an originating ag ricultural good listed in that Party’s Schedule to 
Annex 3-A (Agricultural Safeguard Measures), provide d that the conditions in paragraphs 2 through 5 
are met. The sum of any such additional customs duty and any other customs duty on such good shall not exceed the lesser of:  
(a) the prevailing most-favoured-nation (“ MFN”) applied rate of duty; or 
(b) the MFN applied rate of duty in effect on the day immediately preceding the date of 
entry into force of this Agreement. 
2. The additional customs duty under paragraph 1 shall be set according to each Party’s 
Schedule to Annex 3-A. 
3. Neither Party may apply or maintain an agricu ltural safeguard measure and at the same time 
apply or maintain, with respect to the same good: 
(a) a safeguard measure under Chapter Nine (Safeguards); or 
(b) a measure under Article XIX of GATT 1994 and the Safeguards Agreement. 
4. Neither Party may apply or maintain an agri cultural safeguard measure on an originating 
agricultural good: 
(a) on or after the date that a good is subject  to duty-free treatment  under the Party’s 
Schedule to Annex 2-B, except as provided in Section C of Annex 3-A; or 
(b) that increases the in-quota duty on a good subject to a tariff-rate quota.  WT/REG184/1 
 Page 17 
 
 
5. A Party shall implement an agricultural safeguard  measure in a transparent manner. Within 60 
days after applying a measure, the Party applyi ng the measure shall notify the Party whose good is 
subject to the measure, in writing, and shall provi de it relevant data concerning the measure. On 
request, the Party applying the measure shall cons ult with the Party whose good is subject to the 
measure regarding the application of the measure.  
6. The operation of this Article may be the subj ect of discussion and review in the Committee on 
Agriculture. On request of either Party, the Comm ittee on Agriculture shall review a trigger price set 
out in Annex 3-A. 
Article 3.5 
 
Administration Of Tariff-Rate Quotas  
  Where an importing Party considers that an exporting Party has increased its imports of an agricultural good of a non-Party and thereby increas ed its exports of a domestically-produced good 
subject to a tariff-rate quota administered by the importing Party, the exporting Party shall, on the 
written request of the importing Party, immediatel y consult with the importing Party to develop 
appropriate actions to remedy the situation.  
Article 3.6 
 
Review Of Dairy Market Access Commitments
 
 
 On request of either Party after year 20 of  the Agreement, the Parties shall consult on and 
consider the possibility of modify ing market access commitments fo r the dairy goods listed in each 
Party’s Schedule to Annex 2-B. An agreement by the Parties to modify the market access 
commitment on a dairy good listed in  Annex 2-B, when approved by both Parties in accordance with 
their applicable legal procedures, shall supersed e the terms established for the good in each Party’s 
Schedule to Annex 2-B.  
Article 3.7 
 
Definitions
 
 
 For the purposes of this Chapter:  1. agricultural goods  means those agricultural products re ferred to in Article 2 of the WTO 
Agreement on Agriculture , contained in Annex 1A to the WTO Agreement; 
2. agricultural safeguard measure  means a measure described in Article 3.4.1; and 
3. export subsidy  shall have the meaning assigned to that term in Article 1(e) of the WTO 
Agreement on Agriculture , contained in Annex 1A to the WT O Agreement, including any amendment 
of that article. 
 WT/REG184/1 
Page 18  
 
ANNEX 3-A 
 
Agricultural Safeguard Measures
 
 
Schedule of the United States 
 
Section A : Price-Based Safeguard for Horticulture  
 
1. The United States may apply an agricultural safe guard measure, pursuant to Article 3.4, on an 
originating agricultural good listed in this Section if the good enters the customs territory of the 
United States at a unit import price below the trigger price for that good set out in this Section. 
(a) The unit import price shall be determined on the basis of the F.O.B. import price of 
the good in U.S. dollars. 
(b) The trigger prices shall reflect historic unit import values for the products concerned. 
2. For the purposes of Article 3.4.2, any additiona l customs duty shall conform to the following 
schedule: 
(a) if the difference between the unit import price of the good expressed in terms of 
domestic currency (“import price”) and the trigger price listed in this Section for the good is less than or equal to 10 percent of th e trigger price, no additional duty shall be 
imposed; 
(b) if the difference between the import price and the trigger price is greater than 10 
percent but less than or equal to 40 percent of the trigger price, the additional duty 
shall equal 30 percent of the difference betw een the MFN rate of duty as described in 
Article 3.4.1 and the tariff rate applied to  the good in the U.S. Schedule to Annex 2-
B; 
(c) if the difference between the import price and the trigger price is greater than 40 
percent but less than or equal to 60 percent of the trigger price, the additional duty 
shall equal 50 percent of the difference betw een the MFN rate of duty as described in 
Article 3.4.1 and the tariff rate applied to  the good in the U.S. Schedule to Annex 2-
B; 
(d) if the difference between the import price and the trigger price is greater than 60 
percent but less than or equal to 75 percent of the trigger price, the additional duty 
shall equal 70 percent of the difference betw een the MFN rate of duty as described in 
Article 3.4.1 and the tariff rate applied to  the good in the U.S. Schedule to Annex 2-
B; and 
(e) if the difference between the import price and the trigger price is greater than 75 
percent of the trigger price, the add itional duty shall equal 100 percent of the 
difference between the MFN rate of duty as d escribed in Article 3.4.1 and the tariff 
rate applied to the good in the U.S. Schedule to Annex 2-B. 
 
  WT/REG184/1 
 Page 19 
 
 
 
United States Horticulture Safeguard List 
(US$/Kg or US$/Liter where noted) 
HS Description Trigger Price 
0712202000  ONION POWDER OR FLOUR 0.77 
0712204000 ONIONS, DRIED, EXCE PT POWDER OR FLOUR 1.26 
0712904020 GARLIC POWDER OR FLOUR 0.53 
0712904040 GARLIC, DRIED, EXCEPT POWDER OR FLOUR 0.48 
2002100020 TOMATOES, PREPARED/ PRESERVED, WHOLE OR IN 
PIECES, IN CONTAINERS HOLDING LESS THAN 1.4 KG 0.41 
2002100080 TOMATOES PREPARED/ PRESERVED IN CONTAINERS 
1.4KG OR MORE, NESOI 0.43 
2002908010 TOMATO PASTE IN C ONTAINERS HOLDING LESS THAN 
1.4 KG 0.64 
2002908020 TOMATO PASTE, IN CONT AINERS HOLDING 1.4 KG OR 
MORE 0.56 
2002908030  TOMATO PUREE IN CONTAINERS HOLDING LESS THAN 
1.4 KG 0.46 
2002908040 TOMATO PUREE, IN CONTAINERS HOLDING 1.4 KG OR 
MORE 0.31 
2002908050  TOMATOES PREPA RED/PRESERVED NESOI 0.69 
2005600000  ASPARAGUS, PREPARE D OR PRESERVED NESOI, NOT 
FROZEN 1.59 
2008400020 PEARS, PREPARED/PRESERVED NESOI, IN CONTAINERS 
LESS THAN 1.4 KG 0.65 
2008400040 PEARS, PREPARED/PRESERVED NESOI, IN CONTAINERS 
OF 1.4 KG OR MORE 0.58 
2008504000  APRICOTS, PREPARE D OR PRESERVED NESOI 0.90 
2008702020  PEACHES, PREPARED/PRESERVED NESOI, IN 
CONTAINERS LESS THAN 1.4 KG EACH 0.32 
2008702040 PEACHES, PREPARED/PRESERVED NESOI, IN 
CONTAINERS 1.4 KG OR MORE EACH 0.54 
2008929030  FRUIT MIXTURES WITH PEACHES OR PEARS PACKED IN 
LIQUID MEDIUM IN AIRTIGHT CONTAINERS HOLDING LESS THAN 1.4 KG EACH 0.83 
2008929035  FRUIT MIXTURES WITH PEACHES OR PEARS PACKED IN 
LIQUID MEDIUM IN AIR TIGHT CONTAINERS HOLDING GREATER THAN 1.4 KG 0.75 
2008929040 FRUIT MIXTURES CONTAININGORANGES OR 
GRAPEFRUIT PACKED IN LIQUID MEDIUM IN AIRTIGHT 
CONTAINERS 1.21 
2008929050  FRUIT MIXTURES NESOI PACKED IN QUID MEDIUM IN 
AIRTIGHT CONTAINERS 0.80 
2009110020 ORANGE JUICE UNFERMEN TED FROZEN IN CONTAINERS 
UNDER .946 LITER (IN LITERS) 0.23 
2009110040 ORANGE JUICE UNFERMEN TED FROZEN IN CONTAINERS 
OF .946-3.785 LITER (IN LITERS) 0.23 
2009110060 ORANGE JUICE UNFERMEN TED FROZEN IN CONTAINERS 
OVER 3.785 LITER (IN LITERS) 0.20 
2009124500 ORANGEUICE,UNFERMENTED,NOT FROZEN, NESOI, <20 
BRIX IN LITERS 0.49 
2009190000  ORANGE JUICE, UNFERMENTED, NESOI IN LITERS 0.49 WT/REG184/1 
Page 20  
 
United States Horticulture Safeguard List 
(US$/Kg or US$/Liter where noted) 
2009610020 GRAPE JUICE & MUST, UNFERMENTED, NOT 
CONCENTRATED IN LITERS 0.56 
2009610040 GRAPE JUICE & MUST, <20 BRIX, CONCENTRATED 
FROZEN (IN LITERS) 0.34 
2009610060 GRAPE JUICE & MUST, < 20 BRIX, CONCENTRATED NOT 
FROZEN (IN LITERS) 0.27 
2009690040  GRAPE JUICE & MUST, N ESOI, FROZEN (IN LITERS) 0.32 
2009690060  GRAPE JUICE & MUST, NESO I, NOT FROZEN (IN LITERS) 0.25 
2103204020  TOMATO SAUCES NESOI IN CONTAINERS LESS THAN 1.4 
KG 0.84 
2103204040 TOMATO SAUCES NESOI IN CONTAINERS HOLDING 1.4 
KG OR MORE 0.94 
  
Section B: Quantity-Based Safeguard for Beef  
 
1. The United States shall apply an agricultural saf eguard measure in years nine through 18 of 
the Agreement on originating agricultural goods listed in paragraph 3 of Annex I of the U.S. Schedule 
to Annex 2-B if, in any calendar year, the aggreg ate volume of imports of goods exceeds 110 percent 
of the volume set out for the goods in that year in  paragraph 3 of Annex I of the U.S. Schedule to 
Annex 2-B. 
2. For the purposes of Article 3.4.2, the additiona l customs duty shall equal 75 percent of the 
difference between the MFN rate of duty as described in  Article 3.4.1 and the applicable tariff rate in 
the U.S. Schedule to Annex 2-B on the agricultural goods. 
3. The United States shall maintain an agricultu ral safeguard measure under this Section only 
until the end of the calendar year in which it applies the measure. 
4. The United States shall have the discretion not to apply an agricultural safeguard measure 
under this Section. 
Section C: Price-Based Safeguard for Beef  
 
1. The United States shall apply an agricultural saf eguard measure, pursuant to Article 3.4, on a 
good entered under subheadings 02011050, 020120 80, 02013080, 02021050, 02022080, or 02023080 
of the Harmonized Tariff Schedule of the United States starting in year 19 of the Agreement. 
2. For the purposes of Article 3.4.2, the additiona l customs duty shall equal 65 percent of the 
MFN rate of duty for the good as described in Article 3.4.1. 
3. The United States shall apply the measure as follows: 
(a) if the monthly average index price falls below the 24-month trigger price in any two 
months during the previous quarter of any calendar year, the United States shall apply 
the measure during the current quarter of the calendar year; or  
(b) if the monthly average index price falls below the 24-month trigger price in any 
month of the fourth quarter of any calendar year, or in the month immediately 
preceding the fourth quarter, the United States shall apply the measure during the remainder of the fourth quarter of the calendar year.  WT/REG184/1 
 Page 21 
 
 
4. The measure shall apply to goods that ente r the United States in any calendar year in 
aggregate quantities greater than the sum of: 
(a) the quantity of goods eligible to be ente red under Additional Note 3 to Chapter 2 of 
the Harmonized Tariff Schedule of the United States, identified by certificates issued by the Government of Australia; and 
(b) 70,000 metric tons, which quantity shall grow at a compound annual rate of 0.6 
percent starting in year 19 of the Agreemen t, identified by certificates issued by the 
Government of Australia. 
5. The United States shall have the discretion not to apply an agricultural safeguard measure 
under this Section. 
6. The Parties shall review the operation of this Section every five years after the date of entry 
into force of this Agreement. 
7. For the purposes of this Section: 
(a) monthly average index price  means the monthly average index price for Wholesale 
Boxed Beef Cut-Out Value Select 1-3 Centra l U.S. 600-750 lbs., or its equivalent, as 
reported by the United States Department of Agriculture’s Agricultural Marketing 
Service; and 
(b) 24-month trigger price  means the price that is 6.5 percent less than the average of 
the previous 24 monthly average index prices. 
 
CHAPTER FOUR: TEXTILES AND APPAREL 
 
Article 4.1 
 
Bilateral Emergency Actions
 
 
1. If, as a result of the reduction or elimination of a customs duty under this Agreement, a textile 
or apparel good benefiting from preferential treatme nt under this Agreement is being imported into 
the territory of a Party in such increased quantiti es, in absolute terms or relative to the domestic 
market for that good, and under such conditions as to cause serious damage, or actual threat thereof, 
to a domestic industry producing a like or directly  competitive good, the importing Party may, to the 
extent and for such time as may be necessary to prevent or remedy such damage and to facilitate 
adjustment, take emergency action, consisting of an increase in the rate of customs duty on the good 
to a level not to exceed the lesser of:  
(a) the most-favoured-nation (MFN) applied rate of duty in effect at the time the action is 
taken; and 
(b) the MFN applied rate of duty in effect on the date of entry into force of this 
Agreement. 
2. In determining serious damage, or actua l threat thereof, the importing Party: 
(a) shall examine the effect of increased imports from the exporting Party on the 
particular industry, as reflected in chang es in such relevant economic variables as 
output, productivity, utilization of capacity, in ventories, market share, exports, wages, WT/REG184/1 
Page 22  
 
employment, domestic prices, profits, and investment, none of which is necessarily 
decisive; and 
(b) shall not consider changes in technolo gy or consumer preference as factors 
supporting a determination of serious da mage or actual threat thereof.  
3. The importing Party may take an emergency action under this Article only following an 
investigation by its competent authorities. 
4. In the event that the importing Party decides to  take an emergency action under this Article, 
the importing Party shall deliver to the exporting Part y, without delay, written notice of its decision, 
and, on the request of the exporting Party, shall consult with that Party. 
5. In critical circumstances where delay would cause damage which it would be difficult to 
repair, a Party may take emergency action under this Article on a provisional basis pursuant to a 
preliminary determination that there is clear ev idence that imports from the exporting Party have 
increased as the result of the reduction or elimina tion of a customs duty under this Agreement, and 
such imports are causing serious damage, or actual threat thereof, to a domestic industry producing a 
like or directly competitive good. The duration of such a provisional measure shall not exceed 200 
days, during which time an investigation by its competent authorities shall be undertaken. Any 
additional customs duty paid as a result of a provisi onal measure shall be promptly refunded if the 
investigation does not result in a finding of serious damage or actual threat thereof consistent with 
paragraph 1. The duration of any provisional measure shall be counted as part of the period described 
in paragraph 6(a). 
6. The following conditions and limitations shall a pply to any emergency action taken under this 
Article: 
(a) no emergency action against a good may be maintained for a period exceeding two 
years, except that the period may be extende d by up to two years if the competent 
authorities of the importing Party determine, in conformity with the procedures set out in this Article, that: 
(i) the emergency action continues to be necessary to prevent or remedy serious 
damage and to facilitate adjustme nt by the domestic industry, and  
(ii) there is evidence that the industry is adjusting; 
(b) no emergency action against a good may be taken or maintained beyond the period 
ending ten years after customs duties on th at good have been eliminated pursuant to 
this Agreement; 
(c) no emergency action may be taken by an im porting Party against any particular good 
of the exporting Party more than once; and 
(d) on termination of the emergency action, the ra te of customs duty shall be the rate that 
would have been in effect but for the emergency action. 
7. The importing Party shall provide to the exporting Party mutually agreed trade liberalizing 
compensation in the form of concessions having substan tially equivalent trade effects or equivalent to 
the value of the additional customs duties expect ed to result from the emergency action. Such 
concessions shall be limited to textile or appare l goods, unless the Parties otherwise agree. If the 
Parties are unable to agree on compensation, the exporting Party may take tariff action having trade 
effects substantially equivalent to the trade effe cts of the emergency acti on taken under this Article.  WT/REG184/1 
 Page 23 
 
 
The exporting Party may take such tariff action against any goods of the importing Party. The 
exporting Party shall apply the tariff action only for the minimum period necessary to achieve the 
substantially equivalent trade effects. The importi ng Party’s obligation to provide trade compensation 
and the exporting Party’s right to take tariff ac tion shall terminate when the emergency action 
terminates. 
8. (a) Each Party retains its rights and oblig ations under Article XIX of the GATT 1994 and 
the Safeguards Agreement, and the Ag reement on Textiles and Clothing.  
(b) Neither Party may apply, with respect to the same good at the same time, an 
emergency action under this Article and: 
(i) a safeguard measure under Chapter Nine (Safeguards); or 
(ii) a measure under Article XIX of GA TT 1994 and the Safeguards Agreement, 
or the Agreement on Textiles and Clothing. 
Article 4.2 
 
Rules Of Origin And Related Matters  
 
Rules of Origin 
 
1. This Chapter, including its Annexes, and Chap ter Five (Rules of Origin) shall apply with 
respect to determining whether a textile or apparel good is an  originating good. 
2. For greater clarity, the rules of origin set forth in this Agreement shall not apply in 
determining the country of origin of a tex tile or apparel good for non-preferential purposes. 
Consultations 
 
3. On the request of either Party, the Parties shall consult to consider whether the rule of origin 
applicable to a particular textile or apparel good should be revised to address issues of availability of 
supply of fibres, yarns, or fabrics in the territories of the Parties. 
4. In the consultations referred to in paragraph 3, each Party shall consider all data presented by 
the other Party showing substantial production in its territory of the particular good. The Parties shall 
consider that substantial production has been s hown if a Party demonstrates that its domestic 
producers are capable of supplying commercia l quantities of the good in a timely manner. 
5. The Parties shall endeavour to conclude cons ultations within 60 days of a request. An 
agreement between the Parties resulting from the cons ultations on revising a rule of origin for a good 
shall supersede any prior rule of origin for such  good when approved by the Parties in accordance 
with Article 23.3 (Amendments). 
De minimis  
 6. A textile or apparel good that is not an origin ating good because certain fibres or yarns used 
in the production of the component of the good that determines the tariff classification of the good do not undergo an applicable change in tariff classi fication set out in Annex 4-A, shall nonetheless be WT/REG184/1 
Page 24  
 
considered to be an originating good if the total wei ght of all such fibres or yarns in that component is 
not more than seven percent of the total weight of that component.
4-1 
7. Notwithstanding paragraph 6, a good containing el astomeric yarns in the component of the 
good that determines the tariff classification of the good shall be considered to be an originating good 
only if such yarns are wholly form ed in the territory of a Party. 
Treatment of Sets 
 
8. Notwithstanding the textile and apparel specific ru les of origin set out in Annex 4-A, textile 
or apparel goods classifiable as goods put up in sets for retail sale as provided for in General Rule of 
Interpretation 3 of the Harmonized System shall not  be regarded as originating goods unless each of 
the goods in the set is an originating good or the total value of the nonoriginating goods in the set does 
not exceed ten percent of the customs value of the set.  
Article 4.3 
 
Customs Cooperation  
 
1. The Parties shall cooperate for the purposes of: 
(a) enforcing or assisting in the enforcement of their measures affecting trade in textile or 
apparel goods; 
(b) ensuring the accuracy of claims of origin; 
(c) enforcing or assisting in the enforcemen t of measures implementing international 
agreements affecting trade in  textile or apparel goods; and 
(d) preventing circumvention of international ag reements affecting trade in textile or 
apparel goods. 
2. On the request of the importing Party, the exporting Party shall conduct a verification for 
purposes of enabling the importing Party to determine th at a claim of origin for a textile or apparel 
good is accurate. The exporting Party shall conduct su ch a verification, regardless of whether an 
importer claims preferential tr eatment for the good. The exporting Party may also conduct such a 
verification on its own initiative. 
3. Where the importing Party has a reasonable suspicion that an exporter or producer of the 
exporting Party is engaging in unlawful activity re lating to trade in textile  or apparel goods, the 
exporting Party shall, on the request of the impor ting Party, conduct a verification for purposes of 
enabling the importing Party to determine that the ex porter or producer is complying with applicable 
customs measures affecting trade in textile or apparel goods, including measures that the exporting 
Party adopts and maintains pursuant to this Agr eement and measures of either Party implementing 
other international agreements affecting trade in textile or apparel goods, an d to determine that a 
claim of origin for a textile or apparel good exporte d or produced by that person is accurate. For the 
purposes of this paragraph, a reasonable suspicion of unlawful activity shall be based on relevant 
factual information of the type set forth in Ar ticle 6.5 (Cooperation) or factors that indicate: 
                                                      
4-1 For greater certainty, when the good is a fibre, yarn, or fabric, the “component of the good that 
determines the tariff classification of the good” is all of  the fibres in the yarn, fabric, or group of fibres.  WT/REG184/1 
 Page 25 
 
 
(a) circumvention by the exporter or producer  of applicable customs measures affecting 
trade in textile or apparel goods, including measures adopted to implement this Agreement; or  
(b) the existence of conduct that would facilita te the violation of measures relating to 
other international agreements affec ting trade in textile or apparel goods. 
4. The exporting Party, through its competent au thorities, shall permit the importing Party, 
through its competent authorities, to assist in a ve rification conducted in response to a request under 
paragraph 2 or 3, including by conducting, along with the competent authorities of the exporting 
Party, visits in the territory of the exporting Part y to the premises of an exporter, producer, or any 
person involved in the movement of a textile or apparel good from the territory of the exporting Party 
to the territory of the importing Party. If an expor ter, producer, or other person refuses to consent to a 
visit by the competent authorities of the importing Party, and if the importing Party is unable to make the determination described in paragraph 2 or 3 with in 12 months after its request for a verification, 
the importing Party may take appropriate  action as described in paragraph 8. 
5. In conducting a verification pursuant to paragraph 2 or 3, the exporting Party shall coordinate 
its activities with the importing Party and shall concl ude the verification and report the results to the 
importing Party within a mutually agreed time. The report shall include all documents and facts 
supporting any conclusion that the exporting Party reaches. If the Parties cannot agree on a time for 
concluding the verification and providing a report or  if the exporting Party does not conclude the 
verification and report the results to the importing Party within the agreed time, the importing Party may take appropriate ac tion under paragraph 8. 
6. Each Party shall provide to the other Party, c onsistent with its law, production, trade, and 
transit documents and other information necessary to  conduct verifications unde r paragraphs 2 and 3. 
Any documents or information exchanged between th e Parties in the course of such a verification 
shall be treated in accordance with Article 22.4.2 (Disclosure of Information).  
7. While a verification is being conduc ted, the importing Party may, c onsistent with its law, take 
appropriate action, which may include suspending  the application of preferential treatment, to: 
(a) the textile or apparel good for which a claim of  origin has been made, in the case of a 
verification under paragraph 2; or 
(b) any textile or apparel goods exported or  produced by the person subject to a 
verification under paragraph 3, where the reasonable suspicion of unlawful activity 
relates to those goods. 
8. (a) If the importing Party is unable to make the determination described in paragraph 2 
within 12 months after its request fo r a verification, or makes a negative 
determination, it may, consistent with its  laws, regulations, and procedures, take 
appropriate action, including denying preferen tial treatment to the textile or apparel 
good subject to the verification and to si milar goods exported or produced by the 
person that exported or produced the good. 
(b) If the importing Party is unable to make one  of the determinations described in 
paragraph 3 within 12 months after its requ est for a verification, or makes a negative 
determination, it may, consistent with its  laws, regulations, and procedures, take 
appropriate action, including deny preferen tial treatment to any textile or apparel 
good exported or produced by the person subject to the verification. WT/REG184/1 
Page 26  
 
9. (a) The importing Party may deny preferential treatment or entry under paragraph 8 only 
after providing a written determination to the importer of the reason for the denial. 
(b) If the importing Party takes action under paragr aph 8 because it is unable to make the 
determination described in paragraph 2 or 3, as the case may be, it may continue to 
take appropriate action under paragraph 8 until it receives information sufficient to 
enable it to make that determination.  
10. On the request of either Party, the Parties sha ll consult to resolve any technical or interpretive 
difficulties that may arise under this Article or to discuss ways to improve the effectiveness of their 
cooperative efforts. In addition, either Party may request technical or other assistance from the other 
Party in implementing this Article. The Party recei ving such a request shall make every effort to 
respond favourably and promptly to it. 
Article 4.4 
 
Definitions
 
 
 For the purposes of this Chapter: 
 1. claim of origin  means a claim that a textile or apparel good is an originating good or a good 
of a Party; 
2. exporting Party  means the Party from whose territory a textile or apparel good is exported; 
and 
3. importing Party  means the Party into whose territory a textile or apparel good is imported. 
 
ANNEX 4-A 
 
TEXTILE OR APPAREL SPECIFIC RULES OF ORIGIN  
FOR CHAPTERS 42, 50 THROUGH 63, 70, AND 94 
 
 Note: For the purposes of the rules in this Anne x, a good is considered to be “wholly” of a 
material if the good is made entirely of the material.  
Chapter 42 – Luggage 
 
4202.12  A change to subheading 4202.12 from an y other chapter, except from headings 54.07, 
54.08 or 55.12 through 55.16 or tariff items 5903.10.15, 5903.10.18, 5903.10.20, 5903.10.25, 5903.20.15, 5903.20.18, 5903.20.20, 5903.20.25, 5903.90.15, 5903.90.18, 5903.90.20, 5903.90.25, 5906.99.20, 5906.99.25, 5907.00.05, 
5907.00.15 or 5907.00.60. 
 4202.22  A change to subheading 4202.22 from an y other chapter, except from headings 54.07, 
54.08 or 55.12 through 55.16 or tariff items 5903.10.15, 5903.10.18, 5903.10.20, 5903.10.25, 5903.20.15, 5903.20.18, 5903.20.20, 5903.20.25, 5903.90.15, 5903.90.18, 5903.90.20, 5903.90.25, 5906.99.20, 5906.99.25, 5907.00.05, 
5907.00.15 or 5907.00.60. 
 4202.32  A change to subheading 4202.32 from an y other chapter, except from headings 54.07, 
54.08 or 55.12 through 55.16 or tariff items 5903.10.15, 5903.10.18, 5903.10.20, 5903.10.25, 5903.20.15, 5903.20.18, 5903.20.20, 5903.20.25, 5903.90.15,  WT/REG184/1 
 Page 27 
 
 
5903.90.18, 5903.90.20, 5903.90.25, 5906.99.20, 5906.99.25, 5907.00.05, 5907.00.15 or 5907.00.60. 
 4202.92  A change to subheading 4202.92 from an y other chapter, except from headings 54.07, 
54.08 or 55.12 through 55.16 or tariff items 5903.10.15, 5903.10.18, 5903.10.20, 
5903.10.25, 5903.20.15, 5903.20.18, 5903.20.20, 5903.20.25, 5903.90.15, 
5903.90.18, 5903.90.20, 5903.90.25, 5906.99.20, 5906.99.25, 5907.00.05, 5907.00.15 or 5907.00.60. 
 
Chapter 50 – Silk 
 
5001-5003  A change to heading 50.01 through 50.03 from any other chapter.  5004-5006  A change to heading 50.04 through 50.06 from any heading outside that group.  
5007   A change to heading 50.07 from any other heading. 
 
Chapter 51 - Wool, Fine or Coarse Animal Hair; Horsehair Yarn and Woven Fabric  
 
5101-5105  A change to heading 51.01 through 51.05 from any other chapter.  
5106-5110  A change to heading 51.06 through 51.10 from any heading outside that group. 
 5111-5113  A change to heading 51.11 through 51.13 from any heading outside that group, 
except from heading 51.06 through 51.10, 52.05 through 52.06, 54.01 through 54.04 or 55.09 through 55.10. 
 
Chapter 52 – Cotton  
 
5201-5207  A change to heading 52.01 through 52.07 from any other chapter, except from 
heading 54.01 through 54.05 or 55.01 through 55.07. 
 
5208-5212  A change to heading 52.08 through 52.12 from any heading outside that group, 
except from heading 51.06 through 51.10, 52.05 through 52.06, 54.01 through 54.04 or 55.09 through 55.10. 
 
Chapter 53 - Other Vegetable Textile Fibres; Paper Yarn and Woven Fabrics of Paper Yarn 
 
5301-5305  A change to heading 53.01 through 53.05 from any other chapter.  5306-5308  A change to heading 53.06 through 53.08 from any heading outside that group.  5309   A change to heading 53.09 from any other heading, except from heading 53.07 
through 53.08. 
 5310-5311  A change to heading 53.10 through 53.11 from any heading outside that group, 
except from heading 53.07 through 53.08. 
 Chapter 54 – Man-Made Filaments 
 
5401-5406  A change to heading 54.01 through 54.06 from any other chapter, except from 
heading 52.01 through 52.03 or 55.01 through 55.07. 
 WT/REG184/1 
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5407   A change to tariff items 5407.61.11, 5407.61.21 or 5407.61.91 from tariff items 
5402.43.10 or 5402.52.10, or from any other chapter, except from headings 51.06 through 51.10, 52.05 through 52.06 or 55.09 through 55.10. 
 
A change to heading 54.07 from any other chapter, except from heading 51.06 
through 51.10, 52.05 through 52.06 or 55.09 through 55.10. 
 5408  A change to heading 54.08 from any other chapter, except from heading 51.06 
through 51.10, 52.05 through 52.06 or 55.09 through 55.10. 
 Chapter 55 – Man-Made Staple Fibres 
 
5501-5511  A change to heading 55.01 through 55.11 from any other chapter, except from 
heading 52.01 through 52.03 or 54.01 through 54.05. 
 
5512-5516  A change to heading 55.12 through 55.16 from any heading outside that group, 
except from heading 51.06 through 51.10, 52.05 through 52.06, 54.01 through 54.04 or 55.09 through 55.10. 
 
Chapter 56 - Wadding, Felt and Nonwovens; Special  Yarns; Twine, Cordage, Ropes and Cables 
and Articles Thereof 
 
5601-5609  A change to heading 56.01 through 56.09 from any other chapter, except from 
heading 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, or Chapter 54 through 55. 
 Chapter 57 - Carpets and Other Textile Floor Coverings 
 
5701-5705 A change to heading 57.01 through 57.05 from any other chapter, except from 
heading 51.06 through 51.13, 52.04 through 52.12, 53.08 or 53.11, Chapter 54, or heading 55.08 through 55.16.  
 Chapter 58 - Special Woven Fabrics; Tufted Textile Fabrics; Lace; Tapestries; Trimmings; Embroidery  
5801-5811  A change to heading 58.01 through 58.11 from any other chapter, except from 
heading 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 
through 53.11, or Chapter 54 through 55. 
 
Chapter 59 - Impregnated, Coated, Covered or Laminated Textile Fabrics; Textile Articles of a 
Kind Suitable For Industrial Use 
 
5901   A change to heading 59.01 from any other chapter, except from heading 51.11 
through 51.13, 52.08 through 52.12, 53.10 through 53.11, 54.07 through 54.08 or 
55.12 through 55.16.  
 5902   A change to heading 59.02 from any other heading, except from heading 51.06 
through 51.13, 52.04 through 52.12 or 53.06 through 53.11, or Chapter 54 through 
55. 
 5903-5908  A change to heading 59.03 through 59.08 from any other chapter, except from 
heading 51.11 through 51.13, 52.08 through 52.12, 53.10 through 53.11, 54.07 through 54.08 or 55.12 through 55.16. 
  WT/REG184/1 
 Page 29 
 
 
5909   A change to heading 59.09 from any other chapter, except from heading 51.11 
through 51.13, 52.08 through 52.12 or 53.10 through 53.11, Chapter 54, or heading 55.12 through 55.16. 
 5910   A change to heading 59.10 from any other heading, except from heading 51.06 
through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, or 
Chapter 54 through 55. 
 5911   A change to heading 59.11 from any other chapter, except from heading 51.11 
through 51.13, 52.08 through 52.12, 53.10 through 53.11, 54.07 through 54.08 or 
55.12 through 55.16. 
 
Chapter 60 - Knitted or Crocheted Fabrics 
 
6001-6006  A change to heading 60.01 through 60.06 from any other chapter, except from 
heading 51.06 through 51.13, Chapter 52, heading 53.07 through 53.08 or 53.10 
through 53.11, or Chapter 54 through 55. 
 
Chapter 61 - Articles of Apparel and Clothing Accessories, Knitted or Crocheted 
 
Chapter Rule 1
:  Except for fabrics classified in 54 08.22.10, 5408.23.11 , 5408.23.21, and 
5408.24.10, the fabrics identified in  the following sub-headings and 
headings, when used as visible lining ma terial in certain men's and women's 
suits, suit-type jackets, skirts, overc oats, carcoats, anoraks, windbreakers, 
and similar articles, must be both fo rmed from yarn and finished in the 
territory of a Party: 
 
5111 through 5112, 5208.31 through 5208.59, 5209.31 through 5209.59, 5210.31 through 5210.59, 5211.31 through 5211.59, 5212.13 through 5212.15, 5212.23 through 5212.25, 5407.42 through 5407.44, 5407.52 through 5407.54, 5407.61, 5407.72 through 5407.74, 5407.82 through 5407.84, 5407.92 through 5407.94, 5408.22 through 5408.24, 5408.32 
through 5408.34, 5512.19, 5512.29, 5512.99, 5513.21 through 5513.49, 
5514.21 through 5515.99, 5516.12 through 5516.14, 5516.22 through 5516.24, 5516.32 through 5516.34, 5516.42 through 5516.44, 5516.92 through 5516.94, 6001.10, 6001.92, 6005.31 through 6005.44 or 6006.10 through 6006.44. 
 
Chapter Rule 2
:  For the purposes of determining the origin of a good of this Chapter, the rule 
applicable to that good shall only apply to the component that determines the 
tariff classification of the good and such  component must satisfy the tariff 
change requirements set out in the rule fo r that good. If the rule requires that 
the good must also satisfy the tariff change requirements for visible lining 
fabrics listed in chapter rule 1 to this Chapter, such requirement shall only 
apply to the visible lining fabric in the main body of the garment, excluding sleeves, which covers the largest su rface area, and shall not apply to 
removable linings. 
 6101.10-6101.30 A change to subheadings 6101.10 through 6101.30 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that:  
 WT/REG184/1 
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(a) the good is both cut (or knit to shape) and sewn or otherwise 
assembled in the territory of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 61. 
6101.90   A change to subheading 6101.90 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 
53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
6102.10-6102.30  A change to subheadings 6102.10 through 6102.30 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut (or knit to shape) and sewn or otherwise 
assembled in the territory of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 61. 
6102.90   A change to subheading 6102.90 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 
53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 
through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
 6103.11-6103.12  A change to subheadings 6103.11 through 6103.12 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut (or knit to shape) and sewn or otherwise 
assembled in the territory of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 61. 
6103.19   A change to tariff items 6103.19.60 or 6103.19.90 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, chapter 54, or headings 55.08 through 
55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to 
shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
A change to subheading 6103.19 fr om any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 
53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 
through 60.06, provided that:  
 
(a) the good is both cut (or knit to shape) and sewn or otherwise 
assembled in the territory of one or both of the Parties, and   WT/REG184/1 
 Page 31 
 
 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 61. 
6103.21-6103.29  A change to subheadings 6103.21 through 6103.29 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 
55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut (or knit to shape) and sewn or otherwise 
assembled in the territory of one or both of the Parties, and 
(b) with respect to a garment described in heading 61.01 or a jacket or a 
blazer described in heading 61.03, of wool, fine animal hair, cotton or 
man-made fibres, imported as part of an ensemble of these subheadings, any visible lining material contained in the apparel article must satisfy the requirements of Chapter Rule 1 for Chapter 61. 
6103.31-6103.33  A change to subheadings 6103.31 through 6103.33 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut (or knit to shape) and sewn or otherwise 
assembled in the territory of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 61. 
6103.39   A change to tariff items 6103.39.40 or 6103.39.80 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08 or 53.10 through 53.11, chapter 54, or headings 55.08 through 
55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
A change to subheading 6103.39 fr om any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 
53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut (or knit to shape) and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 61. 
6103.41-6103.49 A change to subheadings 6103.41 through 6103.49 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 
55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to 
shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
 WT/REG184/1 
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6104.11-6104.13 A change to subheadings 6104.11 through 6104.13 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut (or knit to shape) and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 61. 
6104.19   A change in tariff items 6104.19.40 or 6104.19.80 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08 or 53.10 through 53.11, chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
A change to subheading 6104.19 fr om any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut (or knit to shape) and sewn or otherwise 
assembled in the territory of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 61. 
6104.21-6104.29 A change to subheadings 6104.21 through 6104.29 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut (or knit to shape) and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) with respect to a garment described  in heading 61.02, a jacket or a 
blazer described in heading 61.04, or a skirt described in heading 61.04, of wool, fine animal hair, cotton or man-made fibres, imported 
as part of an ensemble of these subheadings, any visible lining material contained in the apparel article must satisfy the requirements 
of Chapter Rule 1 for Chapter 61. 
6104.31-6104.33  A change to subheadings 6104.31 through 6104.33 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut (or knit to shape) and sewn or otherwise 
assembled in the territory of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 61.   WT/REG184/1 
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6104.39   A change to tariff items 6104.39.20 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
A change to subheading 6104.39 fr om any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut (or knit to shape) and sewn or otherwise 
assembled in the territory of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 61. 
6104.41-6104.49  A change to subheadings 6104.41 through 6104.49 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
6104.51-6104.53  A change to subheadings 6104.51 through 6104.53 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut (or knit to shape) and sewn or otherwise 
assembled in the territory of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 61.  
6104.59   A change to tariff items 6104.59.40 or 6104.59.80 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
A change to subheading 6104.59 fr om any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut (or knit to shape) and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 61.  WT/REG184/1 
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6104.61-6104.69  A change to subheadings 6104.61 through 6104.69 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the 
Parties. 
 6105-6106   A change to headings 61.05 through 61.06 from any other chapter, except 
from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 
through 60.06, provided that the good is both cut (or knit to shape) and sewn 
or otherwise assembled in the territory of one or both of the Parties. 
 6107.11-6107.19  A change to subheadings 6107.11 through 6107.19 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 
55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
 6107.21   A change to subheading 6107.21 from:  
 
(a) tariff items 6006.21.10, 6006.22.10, 6006.23.10, or 6006.24.10 
provided that the good, exclusive of collar, cuffs, waistband or elastic, 
is wholly of such fabric and the good is both cut and sewn or otherwise assembled in the territory of one or both of the Parties, or 
(b) any other chapter, except from headings 51.06 through 51.13, 52.04 
through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
6107.22-6107.99  A change to subheadings 6107.22 through 6107.99 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
6108.11-6108.19  A change to subheadings 6108.11 through 6108.19 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the 
Parties. 
 6108.21   A change to subheading 6108.21 from:  
(a) tariff items 6006.21.10, 6006.22.10, 6006.23.10, or 6006.24.10 
provided that the good, exclusive of waistband, elastic or lace, is 
wholly of such fabric and the good is both cut and sewn or otherwise 
assembled in the territory of one or both of the Parties, or  WT/REG184/1 
 Page 35 
 
 
(b) any other chapter, except from headings 51.06 through 51.13, 52.04 
through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
6108.22-6108.29  A change to subheadings 6108.22 through 6108.29 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the 
Parties. 
 6108.31   A change to subheading 6108.31 from:  
(a) tariff items 6006.21.10, 6006.22.10, 6006.23.10, or 6006.24.10 
provided that the good, exclusive of collar, cuffs, waistband, elastic or 
lace, is wholly of such fabric and the good is both cut and sewn or otherwise assembled in the territory of one or both of the Parties, or 
(b) any other chapter, except from headings 51.06 through 51.13, 52.04 
through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided 
that the good is both cut (or knit to shape) and sewn or otherwise 
assembled in the territory of one or both of the Parties. 
6108.32-6108.39  A change to subheadings 6108.32 through 6108.39 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 
55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to 
shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
 6108.91-6108.99  A change to subheadings 6108.91 through 6108.99 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 
55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
6109-6111   A change to headings 61.09 through 61.11 from any other chapter, except 
from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
6112.11-6112.19  A change to subheadings 6112.11 through 6112.19 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the 
Parties. 
 WT/REG184/1 
Page 36  
 
6112.20   A change to subheading 6112.20 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 through 60.06, provided that:  
 
(a) the good is both cut (or knit to shape) and sewn or otherwise 
assembled in the territory of one or both of the Parties, and  
(b) with respect to a garment described in heading 61.01, 61.02, 62.01 or 
62.02, of wool, fine animal hair, cotton or man-made fibres, imported 
as part of a ski-suit of this subheading, any visible lining material 
contained in the apparel article must satisfy the requirements of 
Chapter Rule 1 for Chapter 61. 
6112.31-6112.49  A change to subheadings 6112.31 through 6112.49 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 
55.16 or 60.01 through 60.06, provided that the good is both cut (or knit to 
shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
 6113-6117   A change to headings 61.13 through 61.17 from any other chapter, except 
from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 
or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16 or 60.01 
through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
Chapter 62  Articles of Apparel and Clothing Accessories, Not Knitted or Crocheted  
 
Chapter Rule 1
:  Except for fabrics classified in 54 08.22.10, 5408.23.11 , 5408.23.21, and 
5408.24.10, the fabrics identified in  the following sub-headings and 
headings, when used as visible lining ma terial in certain men's and women's 
suits, suit-type jackets, skirts, overc oats, carcoats, anoraks, windbreakers, 
and similar articles, must be both fo rmed from yarn and finished in the 
territory of a Party: 
 
5111 through 5112, 5208.31 through 5208.59, 5209.31 through 5209.59, 5210.31 through 5210.59, 5211.31 through 5211.59, 5212.13 through 5212.15, 5212.23 through 5212.25, 5407.42 through 5407.44, 5407.52 
through 5407.54, 5407.61, 5407.72 through 5407.74, 5407.82 through 
5407.84, 5407.92 through 5407.94, 5408.22 through 5408.24, 5408.32 through 5408.34, 5512.19, 5512.29, 5512.99, 5513.21 through 5513.49, 5514.21 through 5515.99, 5516.12 through 5516.14, 5516.22 through 5516.24, 5516.32 through 5516.34, 5516.42 through 5516.44, 5516.92 through 5516.94, 6001.10, 6001.92, 6005.31 through 6005.44 or 6006.10 
through 6006.44. 
 
Chapter Rule 2
:  Apparel goods of this Chapter shall be  considered to originate if  they are 
both cut and sewn or otherwise assembled in the territory of one or both of 
the Parties and if the fabric of the outer shell, exclusive of collars or cuffs, is 
wholly of one or more of the following: 
 
(a) Velveteen fabrics of subheading 5801.23, containing 85 per cent or 
more by weight of cotton;  WT/REG184/1 
 Page 37 
 
 
(b) Corduroy fabrics of subheading 5801.22, containing 85 per cent or 
more by weight of cotton and containing more than 7.5 wales per centrimetre;  
(c) Fabrics of subheading 5111.11 or 5111.19, if hand-woven, with a 
loom width of less than 76 cm, woven in the United Kingdom in 
accordance with the rules and regulations of the Harris Tweed 
Association, Ltd., and so certified by the Association; 
(d) Fabrics of subheading 5112.30, weighing not more than 340 grams 
per square meter, containing wool, not less than 20 per cent by weight 
of fine animal hair and not less than 15 per cent by weight of man-
made staple fibres; or  
(e) Batiste fabrics of subheading 5513.11 or 5513.21, of square 
construction, of single yarns exceed ing 76 metric count, containing 
between 60 and 70 warp ends and f illing picks per square centimetre, 
of a weight not exceeding 110 grams per square meter. 
Chapter Rule 3
:  For the purposes of determining the origin of a good of this Chapter, the rule 
applicable to that good shall only apply to the component that determines the 
tariff classification of the good and such  component must satisfy the tariff 
change requirements set out in the rule fo r that good. If the rule requires that 
the good must also satisfy the tariff change requirements for visible lining 
fabrics listed in chapter rule 1 to this Chapter, such requirement shall only 
apply to the visible lining fabric in the main body of the garment, excluding 
sleeves, which covers the largest su rface area, and shall not apply to 
removable linings. 
 
6201.11-6201.13  A change to subheadings 6201.11 through 6201.13 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 62. 
6201.19   A change to subheading 6201.19 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 
through 58.02 or 60.01 through 60.06, provided that the good is both cut and 
sewn or otherwise assembled in the territory of one or both of the Parties. 
 6201.91-6201.93  A change to subheadings 6201.91 through 6201.93 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 
55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and WT/REG184/1 
Page 38  
 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 62.  
6201.99   A change to subheading 6201.99 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 
through 58.02 or 60.01 through 60.06, provided that the good is both cut and 
sewn or otherwise assembled in the territory of one or both of the Parties. 
 6202.11-6202.13  A change to subheadings 6202.11 through 6202.13 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 
55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 62. 
6202.19   A change to subheading 6202.19 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and 
sewn or otherwise assembled in the territory of one or both of the Parties. 
 6202.91-6202.93  A change to subheadings 6202.91 through 6202.93 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 
55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 62.  
6202.99   A change to subheading 6202.99 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
6203.11-6203.12  A change to subheadings 6203.11 through 6203.12 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 62.  WT/REG184/1 
 Page 39 
 
 
6203.19   A change to tariff items 6203.19.50 or 6203.19.90 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or both of the 
Parties.  
 
A change to subheading 6203.19 fr om any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 
through 58.02 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 62.  
6203.21-6203.29 A change to subheadings 6203.21 through 6203.29 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and 
(b) with respect to a garment described in heading 62.01 or a jacket or a 
blazer described in heading 62.03, of wool, fine animal hair, cotton or 
man-made fibres, imported as part of an ensemble of these 
subheadings, any visible lining material contained in the apparel 
article must satisfy the requirements of Chapter Rule 1 for Chapter 62. 
6203.31-6203.33 A change to subheadings 6203.31 through 6203.33 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 
55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 62.  
6203.39   A change to tariff items 6203.39.50 or 6203.39.90 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or both of the 
Parties. 
 
A change to subheading 6203.39 fr om any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or WT/REG184/1 
Page 40  
 
53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 62. 
6203.41-6203.49 A change to subheadings 6203.41 through 6203.49 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 
55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is 
both cut and sewn or otherwise assembled in the territory of one or both of the Parties. 
 6204.11-6204.13 A change to subheadings 6204.11 through 6204.13 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 62. 
6204.19   A change to tariff items 6204.19.40 or 6204.19.80 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 
55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is 
both cut and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
A change to subheading 6204.19 fr om any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 
53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 
through 58.02 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 62. 
6204.21-6204.29 A change to subheadings 6204.21 through 6204.29 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and   WT/REG184/1 
 Page 41 
 
 
(b) with respect to a garment described  in heading 62.02, a jacket or a 
blazer described in heading 62.04, or a skirt described in heading 62.04, of wool, fine animal hair, cotton or man-made fibres, imported 
as part of an ensemble of these subheadings, any visible lining material contained in the apparel article must satisfy the requirements 
of Chapter Rule 1 for Chapter 62. 
6204.31-6204.33 A change to subheadings 6204.31 through 6204.33 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 62.  
6204.39  A change to tariff items 6204.39.60 or 6204.39.80 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
A change to subheading 6204.39 fr om any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that:  
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 62. 
6204.41-6204.49  A change to subheadings 6204.41 through 6204.49 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
6204.51-6204.53  A change to subheadings 6204.51 through 6204.53 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 62. WT/REG184/1 
Page 42  
 
6204.59   A change to tariff item 6204.59.40 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
A change to subheading 6204.59 fr om any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that: 
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and 
(b) any visible lining material contained in the apparel article must satisfy 
the requirements of Chapter Rule 1 for Chapter 62.  
6204.61-6204.69  A change to subheadings 6204.61 through 6204.69 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
6205.10   A change to subheading 6205.10 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and 
sewn or otherwise assembled in the territory of one or both of the Parties. 
 6205.20-6205.30    
Subheading Rule:   Men's or boys' shirts of cotton or man-made fibres shall be considered to 
originate if they are both cut and assembled in the territory of one or more of 
the Parties and if the fabric of the outer shell, exclusive of collars or cuffs, is 
wholly of one or more of the following: 
 
(a) Fabrics of subheading 5208.21, 5208.22, 5208.29, 5208.31, 5208.32, 
5208.39, 5208.41, 5208.42, 5208.49, 5208.51, 5208.52 or 5208.59, of 
average yarn number exceeding 135 metric; 
(b) Fabrics of subheading 5513.11 or 551 3.21, not of square construction, 
containing more than 70 warp e nds and filling picks per square 
centimetre, of average yarn number exceeding 70 metric; 
(c) Fabrics of subheading 5210.21 or 521 0.31, not of square construction, 
containing more than 70 warp e nds and filling picks per square 
centimetre, of average yarn number exceeding 70 metric; 
(d) Fabrics of subheading 5208.22 or 520 8.32, not of square construction, 
containing more than 75 warp e nds and filling picks per square 
centimetre, of average yarn number exceeding 65 metric;  WT/REG184/1 
 Page 43 
 
 
(e) Fabrics of subheading 5407.81, 5407.82 or 5407.83, weighing less 
than 170 grams per square meter, having a dobby weave created by a 
dobby attachment; 
(f) Fabrics of subheading 5208.42 or 520 8.49, not of square construction, 
containing more than 85 warp e nds and filling picks per square 
centimetre, of average yarn number exceeding 85 metric; 
(g) Fabrics of subheading 5208.51, of square construction, containing 
more than 75 warp ends and filling picks per square centimetre, made 
with single yarns, of average yarn number 95 or greater metric;  
(h) Fabrics of subheading 5208.41, of  square construction, with a 
gingham pattern, containing more th an 85 warp ends and filling picks 
per square centimetre, made with single yarns, of average yarn number 95 or greater metric, and characterized by a check effect produced by the variation in colour of the yarns in the warp and filling; or 
(i) Fabrics of subheading 5208.41, with the warp coloured with 
vegetable dyes, and the filling yarns white or coloured with vegetable 
dyes, of average yarn number greater than 65 metric.  
6205.20-6205.30  A change to subheadings 6205.20 through 6205.30 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 
55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is 
both cut and sewn or otherwise assembled in the territory of one or both of the Parties. 
 6205.90  A change to subheading 6205.90 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 
53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or both of the Parties. 
 6206-6210  A change to headings 62.06 through 62.10 from any ot her chapter, except 
from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 
53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
6211.11-6211.12  A change to subheadings 6211.11 through 6211.12 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or both of 
the Parties. 
 6211.20  A change to subheading 6211.20 from any other chapter, except from 
headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 
through 58.02 or 60.01 through 60.06, provided that: WT/REG184/1 
Page 44  
 
 
(a) the good is both cut and sewn or ot herwise assembled in the territory 
of one or both of the Parties, and  
(b) with respect to a garment described in heading 61.01, 61.02, 62.01 or 
62.02, of wool, fine animal hair, cotton or man-made fibres, imported 
as part of a ski-suit of this subheading, any visible lining material 
contained in the apparel article must satisfy the requirements of 
Chapter Rule 1 for Chapter 62. 
6211.31-6211.49  A change to subheadings 6211.31 through 6211.49 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 
through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 
55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
6212.10   A change to subheading 6212.10 from any other chapter, provided that the 
good is both cut and sewn or otherwise as sembled in the territory of one or 
both of the Parties, and provided that , during each annual period, such goods 
of a producer or an entity controlling production shall be eligible for preferential treatment under this Agreem ent only if the aggregate cost of 
fabric(s) (exclusive of findings and tr immings) formed in the territory of one 
or both of the Parties that is used in the production of all such articles of that 
producer or entity during the preceding annual period is at least 75 percent of the aggregate declared customs value of the fabric (exclusive of findings and trimmings) contained in all such goods of that producer or entity that are entered during the preceding one year period. 
 
6212.20-6212.90  A change to subheadings 6212.20 through 6212.90 from any other chapter, 
except from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or both of the 
Parties. 
 6213-6217   A change to headings 62.13 through 62.17 from any other chapter, except 
from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or headings 55.08 through 55.16, 58.01 
through 58.02 or 60.01 through 60.06, provided that the good is both cut and 
sewn or otherwise assembled in the territory of one or both of the Parties. 
 
Chapter 63 - Other Made Up Textile Articles; Sets; Worn Clothing and Worn Textile Articles; 
Rags 
 Chapter Rule 1:
  For the purposes of determining the origin of a good of this Chapter, the rule 
applicable to that good shall only apply to the component that determines the 
tariff classification of the good and such  component must satisfy the tariff 
change requirements set out in the rule for that good.  
 6301   A change to subheading 6301.20 from heading 5108aa
4-A-1 or from any other 
chapter, except from heading 51.06 through 51.13, 52.04 through 52.12, 
                                                      
4-A-1 Subheadings 5108.10 and 5108.20 to be amended to provide for yarns of mohair.  WT/REG184/1 
 Page 45 
 
 
53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or heading 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) a nd sewn or otherwise assembled in the 
territory of one or both of the Parties. 
 
A change to subheading 63.01 from an y other chapter, except from heading 
51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or heading 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the 
Parties. 
 6302   A change to heading 63.02 from an y other chapter, except from heading 
51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or heading 55.08 through 55.16, 58.01 through 
58.02 or 60.01 through 60.06, provided that the good is both cut (or knit to 
shape) and sewn or otherwise assembled in the territory of one or both of the 
Parties. 
 6303   A change to tariff item 6303.92.10 from tariff items 5402.43.10 or 
5402.52.10 or any other chapter, except from headings 51.06 through 51.13, 
5204 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, chapter 54, 
or heading 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut and sewn or otherwise assembled in the territory of one or both of the Parties. 
 
A change to heading 63.03 from any ot her chapter, except from heading 
51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or heading 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the 
Parties. 
 
6304-6308 A change to headings 63.04 through 63.08 from any other chapter, except 
from headings 51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 through 53.11, Chapter 54, or heading 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both 
cut (or knit to shape) and sewn or othe rwise assembled in the territory of one 
or both of the Parties. 
 6309    A change to 63.09 from any other heading.  6310   A change to heading 63.10 from an y other chapter, except from heading 
51.06 through 51.13, 52.04 through 52.12, 53.07 through 53.08 or 53.10 
through 53.11, Chapter 54, or heading 55.08 through 55.16, 58.01 through 58.02 or 60.01 through 60.06, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or both of the 
Parties. 
 
Chapter 70 - Glass Fibre Rovings and Yarns  
 
7019   A change to heading 70.19 from an y other heading, except from headings  
70.07 through 70.20. WT/REG184/1 
Page 46  
 
Chapter 94 - Comforters 
 
9404.90  A change to subheading 9404.90 from any other chapter, except from 
headings 50.07, 51.11 through 51.13, 52.08 through 52.12, 53.09 through 53.11, 54.07 through 54.08, 55.12 through 55.16 or subheading 6307.90 
  
CHAPTER FIVE: RULES OF ORIGIN 
 
Section A : Rules Of Origin
 
 
Article 5.1 
 
Originating Goods  
 
 For the purposes of this Agreement, an originating good  means: 
 
(a) a good wholly obtained or produced entirely in the territory of one or both of the 
Parties; 
(b) a good produced entirely in the territory of one or both of the Parties where 
(i) each of the non-originating materials used in the production of the good 
undergoes an applicable change in tariff classification specified in Annex 4-A 
(Textile and Apparel Specific Rules of Origin) or Annex 5-A (Product-Specific Rules of Origin); or 
(ii) the good otherwise satisfies any applicable regional value content; or  
(iii) the good meets any other requirements specified in Annex 4-A or Annex 5-
A; and  
the good satisfies all other applicable requi rements of this Chapter or Chapter 4; 
(c) a good produced entirely in the territory of one or both of the Parties exclusively from 
originating materials; or  
(d) a good that otherwise qualifies as an originating good under this Chapter or      
Chapter 4. 
Article 5.2 
 
De minimis
 
 
1. Each Party shall provide that a good that do es not undergo a change in tariff classification 
pursuant to Annex 5-A is none theless an originating good if: 
(a) the value of all non-originating materials used in the production of the good that do 
not undergo the required change in tariff classification does not exceed 10 percent of 
the adjusted value of the good; and 
(b) the good meets all other applicable criteria set forth in this Chapter for qualifying as 
an originating good.  WT/REG184/1 
 Page 47 
 
 
The value of such non-originating materials shall, however, be included in the value of nonoriginating 
materials for any applicable regional va lue content requirement for the good. 
 2. Paragraph 1 does not apply to a: 
(a) non-originating material provided for in Chapter 4 of the Harmonized System or in 
subheading 1901.90 that is used in the production of a good provided for in Chapter 4 
of the Harmonized System; 
(b) non-originating material provided for in Chapter 4 of the Harmonized System or in 
subheading 1901.90 that is used in the production of a good provided for in the following provisions: subheadings 1901.10, 1901.20, or 1901.90; heading 2105; or 
subheadings 2106.90, 2202.90, or 2309.90; 
(c) non-originating material provided for in heading 0805 or subheadings 2009.11 
through 2009.30 that is used in the production of a good provided for in subheadings 2009.11 through 2009.30, or subheadings 2106.90 or 2202.90; 
(d) non-originating material provided for in Chapter 15 of the Harmonized System that is 
used in the production of a good provided for in headings 1501 through 1508, 1512, 
1514, or 1515; 
(e) non-originating material provided for in heading 1701 that is used in the production 
of a good provided for in headings 1701 through 1703;  
(f) non-originating material provided for in Chapter 17 of the Harmonized System or 
heading 1805 that is used in the production of a good provided for in subheading 
1806.10; 
(g) non-originating material provided for in headings 2203 through 2208 that is used in 
the production of a good provided for in headings 2207 or 2208; and  
(h) non-originating material used in the production of a good provided for in Chapters 1 
through 21 of the Harmonized System unl ess the non-originating material is provided 
for in a different subheading than the good for which origin is being determined 
under this Article. 
3. With respect to a textile or apparel good, Artic le 4.2.6 (Rules of Orig in and Related Matters: 
De minimis ) applies in place of paragraph 1. 
Article 5.3 
 
Accumulation
 
 1. Originating materials from the territory of a Party, used in the production of a good in the 
territory of the other Party, shall be considered to  originate in the territory of the other Party.  
2. A good is an originating good when it is produced in the territory of one or both Parties by 
one or more producers, provided that the good satisfi es the requirements in Article 5.1 and all other 
applicable requirements of this Chapter or Chapter 4.  WT/REG184/1 
Page 48  
 
Article 5.4 
 
Regional Value Content
 
 1. Except for goods covered by paragraph 2, wh ere Annex 5-A refers to a regional value 
content, each Party shall provide that for purposes of  claims for preferential treatment in accordance 
with Article 5.12, an importer, exporter, or prod ucer may calculate regional value content based on 
one of the following methods: 
(a) Build-down Method 
  RVC =  AV - VNM
 x 100 
   AV 
   where    RVC  is the regional value content, expressed as a percentage; 
 
  AV  is the adjusted value; and   VNM  is the value of non-originating materials that are acquired and used by the 
producer in the production of the good. VNM does not include the value of a material that is self-produced. 
 
(b) Build-up Method 
  RVC = VOM
 x 100 
  AV   
  where 
   RVC is the regional value content, expressed as a percentage;    AV  is the adjusted value; and  
 VOM  is the value of originating materi als that are acquired or self-produced, and 
used by the producer in the production of the good. 
 2. When regional value content is required for certain automotive goods
5-2 under Annex 5-A to 
determine if a good is originating, each Party shall provide that the regional value content of a  good 
shall be calculated solely on the basis of the following method: 
 Method for Automotive Products (“Net Cost Method”) 
  RVC = NC - VNM
 x 100 
  NC  
 where 
  RVC  is the regional value content, expressed as a percentage;  
                                                     
 
5-2 HS 8407.31 through 34 (engines), 8407.20 (diesel engines for vehicles), 84.09 (parts of engines) 
87.01 through 87.05 (motor vehicles), 87.06 (chassis), 87.07 (bodies), and 87.08 (motor vehicle parts).  WT/REG184/1 
 Page 49 
 
 
 NC  is the net cost of the good;  
VNM   is the value of non-originating materials acquired and used by the producer in the 
production of the good. VNM does not include the value of a material that is self-
produced. 
 
3. Each Party shall provide that, for the purpose of regional value content under paragraph 2 for 
motor vehicles,
5-3 the importer, exporter, or producer may use a calculation averaged over the 
producer’s fiscal year using any one of the following categories: 
(a) the same model line of motor vehicles in the same class of vehicles produced in the 
same plant in the territory of a Party; 
(b) the same class of motor vehicles produced in th e same plant in the territory of a Party; 
or 
(c) the same model line of motor vehicles produced in the territory of a Party,  
on the basis of all motor vehicles in the category or only those motor vehicles in the category that are 
exported to the territory of the other Party. 
4. Each Party shall provide that, for the purpose of calculating regional value content under 
paragraph 2 for automotive materials5-4 produced in the same plant, the importer, exporter, or 
producer may use a calculation: 
(a) averaged:  
over the fiscal year of the motor vehicle producer to whom the good is sold,  
(i) over any quarter or month, or  
(ii) over its fiscal year, 
provided that the good was produced during the fiscal year, quarter, or month forming 
the basis for the calculation; 
 
(b) in which the average referred to in sub-pa ragraph (a) is calculated separately for such 
goods sold to one or more motor vehicle producers; or 
(c) in which the average in sub-paragraph (a) or (b) is calculated separately for those 
goods that are exported to the territory of the other Party. 
Article 5.5 
 
Value Of Materials  
 1. Each Party shall provide that for the purpose of Articles 5.2 and 5.4, the value of a material is: 
(a) for a material imported by the producer of the good, the adjusted value of the 
material; 
                                                     
 
5-3 Motor Vehicles: HS 87.01 through 87.05 (motor vehicles). 
5-4 Automotive Components or Materials: HS 8407.31 through 34 (engines), 8407.20 (diesel engines 
for vehicles), 84.09 (parts of engines), 87.06 (chassis), 87.07 (bodies), and 87.08 (motor vehicle parts). WT/REG184/1 
Page 50  
 
(b) for a material acquired in the territory  where the good is produced, the value, 
determined in accordance with Articles 1 through 8, Article 15, and the corresponding interpretative notes of the Cust oms Valuation Agreement, i.e., in the 
same manner as for imported goods, with such reasonable modifications as may be required due to the absence of an importation; or 
(c) for a material that is self-produced, the su m of all expenses incurred in the production 
of the material, including general expenses, a nd an amount for profit equivalent to the 
profit added in the normal course of trade. 
2. Each Party shall provide that the value of  materials may be adjusted as follows:  
(a) for originating materials, the following e xpenses may be added to the value of the 
material if not included under paragraph 1: 
(i) the costs of freight, insurance, pack ing, and all other costs incurred in 
transporting the material within or be tween the Parties’ territories to the 
location of the producer; 
(ii) duties, taxes, and customs brokerage fees on the material paid in the territory 
of one or both of the Parties, other than duties and taxes that are waived, 
refunded, refundable, or otherwise r ecoverable, including credit against duty 
or tax paid or payable; and 
(iii) the cost of waste and spoilage resultin g from the use of the material in the 
production of the good, less the value of  renewable scrap or by-products; and 
(b) for non-originating materials, where included under paragraph 1, the following 
expenses may be deducted from the value of the material: 
(i) the costs of freight, insurance, pack ing, and all other costs incurred in 
transporting the material within or be tween the Parties’ territories to the 
location of the producer; 
(ii) duties, taxes, and customs brokerage fees on the material paid in the territory 
of one or both of the Parties, other than duties and taxes that are waived, 
refunded, refundable, or otherwise r ecoverable, including credit against duty 
or tax paid or payable; 
(iii) the cost of waste and spoilage resultin g from the use of the material in the 
production of the good, less the value of renewable scrap or by-products; 
(iv) the cost of processing incurred in the terr itory of a Party in the production of 
the non-originating material; and 
(v) the cost of originating materials used  in the production of the nonoriginating 
material in the territory of a Party. 
Article 5.6 
 
Accessories, Spare Parts, And Tools
 
  Each Party shall provide that accessories, spare parts, or tools delivered with a good that form 
part of the good's standard accessories, spare parts, or tools, shall be treated as originating goods if the  WT/REG184/1 
 Page 51 
 
 
good  is an originating good, and shall be disreg arded in determining whether all the nonoriginating 
materials used in the production of the good underg o the applicable change in tariff classification, 
provided that:  
(a) the accessories, spare parts, or tools ar e not invoiced separately from the good; 
(b) the quantities and value of the accessories, spar e parts, or tools are customary for the 
good; and 
(c) if the good is subject to a regional value content requirement, the value of the 
accessories, spare parts, or tools shall be taken into account as originating or nonoriginating materials, as the case may be , in calculating the regional value content 
of the good. 
Article 5.7 
 
Fungible Goods And Materials
 
 
1. Each Party shall provide that the determinati on of whether fungible goods or materials are 
originating goods shall be made either by physical  segregation of each good or material or through the 
use of any inventory management method, such as averaging, last-in first-out, or first-in first-out, recognized in the generally accepted accounting prin ciples of the Party in which the production is 
performed or otherwise accepted by the Pa rty in which the production is performed. 
2. Each Party shall provide that that an inve ntory management method selected under paragraph 
1 for particular fungible goods or materials shall continue to be used for those fungible goods or 
materials throughout the fiscal year of the pers on that selected the inventory management method. 
Article 5.8 
 
Packaging Materials And Containers For Retail Sale
 
 
 Each Party shall provide that packaging materi als and containers in which a good is packaged 
for retail sale, if classified with the good, shall be disregarded in determining whether all the 
nonoriginating materials used in the production of the good undergo the applicable change in tariff 
classification set out in Annex 5-A or Annex 4-A, a nd, if the good is subject to a regional value 
content requirement, the value of such packaging ma terials and containers shall be taken into account 
as originating or non-originating materials, as the case may be, in calculating the regional value 
content of the good. 
 
Article 5.9 
 
Packing Materials And Containers For Shipment  
  Each Party shall provide that packing mate rials and containers for shipment shall be 
disregarded in determining whether:  
(a) the non-originating materials used in the production of the good undergo the 
applicable change in tariff classification set  out in Annex 5-A or Annex 4-A; and  
(b) the good satisfies a regional value content requirement. WT/REG184/1 
Page 52  
 
Article 5.10 
 
Indirect Materials
 
  Each Party shall provide that an indirect mate rial shall be treated as an originating material 
without regard to where it is produced and its valu e shall be the cost regi stered in the accounting 
records of the producer of the good.  
Article 5.11 
 
Third Country Transportation
 
  A good shall not be considered to be an or iginating good if the good undergoes subsequent 
production or any other operation outside the territories of the Parties, other than unloading, reloading, 
or any other operation necessary to preserve it in  good condition or to transport the good to the 
territory of a Party. 
 
Section B : Supporting Information And Verification
 
 
Article 5.12 
 
Claims For Preferential Treatment  
 1. Each Party shall provide that an importer ma y make a claim for pref erential treatment under 
this Agreement based on the importer’s knowledge or on information in the importer’s possession that the good qualifies as an originating good. 
2. Each Party may require that an importer be prepared to submit, on request, a statement setting 
forth the reasons that the good qualifies as an or iginating good, including pertinent cost and 
manufacturing information. The statement need not be  in a prescribed format, and may be submitted 
electronically, where feasible. 
Article 5.13 
 
Obligations Relating To Importations
 
 1. Each Party shall grant a clai m for preferential treatment unde r this Agreement, made in 
accordance with this Chapter unless the Party po ssesses information that the claim is invalid. 
2. A Party may deny preferential treatment under this Agreement to an imported good if the 
importer fails to comply with any requirement of this Chapter. 
3. If a Party denies a claim for preferential treat ment under this Agreement, it shall issue a 
written determination containing findings of fact  and the legal basis for the determination.  
4. The importing Party shall not subject an importe r to any penalty for making an invalid claim 
for preferential treatment if the importer: 
(a) on becoming aware that such claim is not va lid, promptly and voluntarily corrects the 
claim and pays any duty owing; and 
(b) in any event, corrects the claim and pays any duty owing within a period determined 
by the Party, which shall be at least one year from the submission of the invalid claim.  WT/REG184/1 
 Page 53 
 
 
5. Nothing in this Article shall prevent a Party from taking action under Article 4.3.8 (Customs 
Cooperation). 
Article 5.14 
 
Record Keeping Requirement  
 
 Each Party may require that importers mainta in, for up to five years after the date of 
importation, records relating to the importation of  the good, and may require, as set out in Article 
5.12.2, that an importer provide, on request, record s necessary to demonstrate that a good qualifies as 
an originating good, including records concerning: 
 
(a) the purchase, cost and value of, and payment for, the good; 
(b) the purchase, cost, and value of, and payment for, all materials, including indirect 
materials, used in the production of the good; and 
(c) the production of the good in the form in which the good was exported. 
Article 5.15 
 
Verification  
 1. For the purpose of determining whether a good imported into its territory from the territory of 
the other Party qualifies as an originating good, a Pa rty may conduct a verification by means of one or 
more of the following: 
(a) requests for information from the importer; 
(b) written requests for information to an exporte r or a producer in the territory of the 
other Party; 
(c) requests for the importer to arrange fo r the producer or exporter to provide 
information directly to the Party conducting the verification; 
(d) information received directly by the impor ting Party from an importer as a result of a 
request described in Article 5.12.2; 
(e) visits to the premises of an exporter or a produ cer in the territory of the other Party, in 
accordance with any procedures th at the Parties jointly adopt; 
(f) for textile or apparel goods, procedures set forth in Article 4.3 (Customs 
Cooperation); or 
(g) such other procedures as the Parties may agree. 
2. A Party may deny preferential tariff treatment to a good where the importer, exporter, or 
producer fails to provide informa tion that the Party requests in a verification conducted in accordance 
with paragraph 1 demonstrating that the good is an originating good.  
 WT/REG184/1 
Page 54  
 
Section C : Consultation And Modifications
 
 
Article 5.16 
 
Consultation And Modifications  
 
1. The Parties shall consult and cooperate to ensure that this Chapter is applied in an effective 
and uniform manner. Unless the Parties otherwise agree,  the Parties shall consult within six months of 
the date of entry into force of this Agreement re garding the implementation and application of this 
Chapter. 
2. The Parties shall consult regularly pursuant  to Article 21.5 (Consultations) to discuss 
necessary amendments to this Chapter and its Annexes, taking into account developments in 
technology, production processes,  and other related matters. 
Section D : Application And Interpretation  
 
Article 5.17 
 
Application And Interpretation  
  For the purposes of this Chapter:  
(a) the basis for tariff classification is the Harmonized System; 
(b) any cost and value referred to in this Ch apter shall be recorded and maintained in 
accordance with the generally accepted accounting principles applicable in the territory of the Party in which the good is produced. 
Section E : Definitions
 
 
Article 5.18 
 
Definitions  
  For the purposes of this Chapter: 
 
1. adjusted value  means the value determined under Artic les 1 through 8, Article 15, and the 
corresponding interpretative notes of the Customs Va luation Agreement, as adjusted to exclude any 
costs, charges, or expenses incurred for transportati on, insurance, and related services incidental to the 
international shipment of the good from the count ry of exportation to the place of importation; 
2. class of motor vehicles  means any one of the following categories of motor vehicles: 
(a) motor vehicles provided for in subheading 8701.20, motor vehicles for the transport 
of 16 or more persons provided for in subheadings 8702.10 or 8702.90, and motor 
vehicles of subheadings 8704.10, 8704.22, 8704.23, 8704.32, or 8704.90, or headings 87.05 and 87.06; 
(b) motor vehicles provided for in subheadi ngs 8701.10 or 8701.30 through 8701.90; 
(c) motor vehicles for the transport of 15 or fewer persons provided for in subheadings 
8702.10 or 8702.90, and motor vehicles of  subheadings 8704.21 and 8704.31; or  WT/REG184/1 
 Page 55 
 
 
(d) motor vehicles provided for in subheadings 8703.21 through 8703.90;  
3. fungible goods or materials  means goods or materials that are interchangeable for 
commercial purposes and whose properties are essentially identical; 
4. generally accepted accounting principles  means the recognized consensus or substantial 
authoritative support in the territory of a Party, with  respect to the recording of revenues, expenses, 
costs, assets, and liabilities, the disclosure of inform ation, and the preparation of financial statements. 
These standards may encompass broad guidelines of ge neral application as well as detailed standards, 
practices, and procedures;  
5. good wholly obtained or produced entirely in the territory of one or both of the Parties  
means a good that is: 
(a) a mineral good extracted there; 
(b) a vegetable good, as such good is defined in the Harmonized System, harvested there; 
(c) a live animal born and raised there; 
(d) a good obtained from hunting, trapping, fishing, or aquaculture conducted there; 
(e) a good (fish, shellfish, and any other marine life) taken from the sea by vessels 
registered or recorded with a Party and flying its flag; 
(f) a good produced exclusively from products re ferred to in sub-paragraph (e) on board 
factory ships registered or recorded  with a Party and flying its flag; 
(g) a good taken by a Party, or a person of a Party, from the seabed or beneath the seabed 
outside territorial waters, provided that th e Party has rights to exploit such seabed; 
(h) a good taken from outer space, provided it is obtained by a Party or a person of a 
Party and not processed in the territory of a non-Party; 
(i) waste and scrap derived from 
(i) production there; or 
(ii) used goods collected there, provided such goods are fit only for the recovery 
of raw materials; 
(j) a recovered good derived there, from goods that have passed their life expectancy, or 
are no longer useable due to defects, and utilized there in the production of remanufactured goods; or 
(k) a good produced there exclusively from goods  referred to in s ub-paragraphs (a) 
through (i), or from their derivatives, at any stage of production; 
6. indirect material  means a good used in the production, testing, or inspection of a good but 
not physically incorporated into the good, or a g ood used in the maintenance of buildings or the 
operation of equipment associated with the production of a good, including: 
(a) fuel and energy; WT/REG184/1 
Page 56  
 
(b) tools, dies, and moulds; 
(c) spare parts and materials used in the maintenance of equipment and buildings; 
(d) lubricants, greases, compounding materials, and other materials used in production or 
used to operate equipment and buildings; 
(e) gloves, glasses, footwear, clothing, safety equipment, and supplies; 
(f) equipment, devices, and supplies used for testing or inspecting the goods; 
(g) catalysts and solvents; and 
(h) any other goods that are not incorporated into the good but whose use in the 
production of the good can reasonably be de monstrated to be a part of that 
production; 
7. material  means a good that is used in the production of another good; 
8. material that is self-produced  means an originating material that is produced by a producer 
of a good and used in the production of that good; 
9. model line  means a group of motor vehicles having the same platform or model name; 
10. net cost  means total cost minus sales promotion, marketing, and after-sales service costs, 
royalties, shipping and packing costs, and non-allowabl e interest costs that are included in the total 
cost; 
11. net cost of the good  means the net cost that can be reasonably allocated to the good under 
one of the following methods: 
(a) calculate the total cost incurred with respect  to all goods produced by that producer, 
subtract any sales promotion, marketing and after-sales service costs, royalties, 
shipping and packing costs, and non-allowabl e interest costs that are included in the 
total cost of all such goods, and then r easonably allocate the resulting net cost of 
those goods to the good; 
(b) calculate the total cost incurred with respect  to all goods produced by that producer, 
reasonably allocate the total cost to the good , and then subtract any sales promotion, 
marketing, and after-sales service costs, royalties, shipping and packing costs, and 
non allowable interest costs that are included in the portion of the total cost allocated 
to the good; or 
(c) reasonably allocate each cost that forms part of the total cost incurred with respect to 
the good so that the aggregate of these co sts does not include any sales promotion, 
marketing, and after-sales service costs, royalties, shipping and packing costs, and 
non-allowable interest costs,  
provided that the allocation of all such costs is c onsistent with the provisions regarding the reasonable 
allocation of costs set out in gene rally accepted accounting principles;  
12. non-allowable interest costs  means interest costs incurred by a producer that exceed 700 
basis points above the Party’s applicable official  interest rate for comparable maturities;   WT/REG184/1 
 Page 57 
 
 
13. non-originating material  means a material that has not satisfied the requirements of this 
Chapter; 
14. preferential treatment  means the customs duty rate a nd treatment under Article 2.12 
(Merchandise Processing Fee) that is applicable to  an originating good pursuant to this Agreement; 
15. producer  means a person who grows, raises, mines, harvests, fishes, traps, hunts, 
manufactures, processes, assembl es, or disassembles a good;  
16. production  means growing, raising, mining, harvesting, fishing, trapping, hunting, 
manufacturing, processing, assembling, or disassembling a good;  
17. reasonably allocate  means to apportion in a manner appropriate under generally accepted 
accounting principles; 
18. recovered goods  means materials in the form of individual parts that result from: 
(a) the complete disassembly of goods which have  passed their life expectancy, or are no 
longer useable due to defects,  into individual parts; and 
(b) cleaning, inspecting, or testing, or other processes as necessary for improvement to 
sound working condition of such individual parts; 
19. remanufactured good  means an industrial good assembled in the territory of a Party, falling 
within Chapter 84, 85, or 87 or heading 90.26, 90.31, or 90.32, except a good under heading 84.18, 85.16, or 87.01 through 87.06 that: 
(a) is entirely or partially comprised of recovered goods; 
(b) has a similar life expectancy to, and meets the same performance standards as, a new 
good; and 
(c) enjoys a factory warranty similar to such a new good; 
20. total cost  means all product costs, period costs, and other costs for a good incurred in the 
territory if one or both of the Parties; and 
21. used  means used or consumed in the production of goods. 
 
CHAPTER SIX: CUSTOMS ADMINISTRATION 
 
Article 6.1 
 
Publication And Notification
 
 
1. Each Party shall ensure that its laws, regula tions, guidelines, procedures, and administrative 
rulings governing customs matters are promptly published on the Internet and in print form. 
2. Each Party shall designate one or more inquiry  points to address inquiries from interested 
persons pertaining to customs matters, and sha ll make available on the Internet information 
concerning procedures for making such inquiries. 
3. To the extent possible, each Party shall: WT/REG184/1 
Page 58  
 
(a) publish in advance any regulation governi ng customs matters that it proposes to 
adopt; and 
(b) provide interested persons and the other Party a reasonable opportunity to comment 
on the proposed regulation. 
Article 6.2 
 
Administration
 
 1. Each Party shall administer in a uniform, im partial, and reasonabl e manner all its laws, 
regulations, guidelines, procedures, and admini strative rulings governing customs matters.  
2. Each Party shall ensure that its laws and regulations governing customs matters are not 
prepared, adopted, or applied with a view to or w ith the effect of creating arbitrary or unwarranted 
procedural obstacles to international trade. 
Article 6.3 
 
Advance Rulings
 
 1. Each Party shall provide for written advance ruli ngs to be issued to a person described in 
paragraph 2(a) concerning tariff classification, ques tions arising from the application of the Customs 
Valuation Agreement, country of origin, and the qualification of a good as an originating good under 
this Agreement. 
2. Each Party shall adopt or maintain proce dures for issuing written advance rulings that: 
(a) provide that a potential importer in its terr itory or an exporter or producer in the 
territory of the other Party may request a ruling prior to the importation that is the subject of the advance ruling request; 
(b) include a detailed description of the inform ation required to process a request for an 
advance ruling; and  
(c) provide that an advance ruling will be based  on the facts and circumstances presented 
by the person requesting the ruling. 
3. Each Party shall provide that its customs authorities: 
(a) may request, at any time during the course of evaluating a request for an advance 
ruling, additional information n ecessary to evaluate the request;  
(b) shall issue the advance ruling expediti ously, and no later than 120 days after 
obtaining all necessary information; and 
(c) shall provide a written explanation of the reasons for the ruling. 
4. Subject to paragraph 5, each Party shall appl y an advance ruling to importations into its 
territory beginning on the date it issues the ruling or on any other date specified in the ruling. The 
Party shall apply the treatment provided by the a dvance ruling to all importations regardless of the 
importer, exporter, or producer i nvolved, provided that the facts and circumstances are identical in all 
material respects.  WT/REG184/1 
 Page 59 
 
 
5. A Party may modify or revoke an advance ruli ng on a determination that the ruling was based 
on an error of fact or law, or where there is a cha nge in law consistent with this Agreement, a change 
in a material fact, or a change in the circumst ances on which the ruling is based. The issuing Party 
shall postpone the effective date of any such modifi cation or revocation for at least 60 days where the 
person to whom the ruling was issued has relied in good faith on that ruling. 
Article 6.4 
 
Review And Appeal  
 1. With respect to its determinations relating to customs matters, each Party shall provide that 
importers in its territory have access to:  
(a) at least one level of administrative review of determinations by its customs authorities 
independent of the official or office res ponsible for the decision under review; and 
(b) judicial review of decisions taken at the final level of administrative review.  
Article 6.5 
 
Cooperation
 
 1. Each Party shall endeavour to provide the othe r Party with advance notice of any significant 
modification of administrative policy or other simila r development related to its laws or regulations 
governing importations that is likely to substan tially affect the operation of this Agreement. 
2. The Parties shall, through thei r competent authorities and in accordance with this Chapter, 
cooperate in achieving compliance with their r espective laws and regulations pertaining to: 
(a) the implementation and operation of this Ag reement relating to importation of goods; 
(b) restrictions and prohibitions on imports or exports; and 
(c) such other issues as the Parties may agree. 
3. Where a Party has a reasonable suspicion of unlawf ul activity related to its laws or regulations 
governing importations, it may request that the other Party provide the following types of information 
pertaining to trade transactions relevant to the act ivity if the activity took place no more than five 
years before the date of the request, or from the da te of discovery of the apparent offence in cases of 
fraud, and in other cases on which the Parties may agree:  
(a) the name and address of the importer, e xporter, manufacturer, buyer, vendor, broker, 
or transporter; 
(b) shipping information relating to container num ber, size, port of loading before arrival, 
destination port after departure, name of vessel and carrier, the country of origin, 
place of export, mode of transportation, port of entry of the goods, and cargo description; and 
(c) classification number, quantity, unit of measure, declared value, and tariff treatment. 
4. The Party shall make its request in writing; sh all specify the grounds for reasonable suspicion 
and the purposes for which the information is sough t; and shall identify the requested information 
with sufficient specificity for the other Party to locate and provide the information. The requesting WT/REG184/1 
Page 60  
 
Party may meet this requirement by, inter alia , identifying the importer, exporter, country of origin, 
time period, port or ports of entry, cargo descripti on, or Harmonized System number applicable to the 
importation or exportation in question. 
5. The requested Party shall provide available in formation that is material to the request. 
6. For the purposes of paragraph 3, a Party has a re asonable suspicion of unlawful activity if it is 
based on one or more of the following types of re levant factual information obtained from public or 
private sources: 
(a) information gathered over time that a specific importer, exporter, manufacturer, 
producer, or other person involved in the movement of goods from the territory of 
one Party to the territory of the other Party has not complied with its laws or 
regulations governing importations; 
(b) information gathered over time that some or all of the persons involved in the 
movement of goods within a specific product sector from the territory of one Party to 
the territory of the other Party have not co mplied with the Party’s laws or regulations 
governing importations; 
(c) information from trade and transit docum ents and other information necessary to 
conduct verifications; or 
(d) other information that the Parties agree is sufficient in the context of a particular 
request. 
7. Each Party shall endeavour to provide the othe r Party any other information that would assist 
it in determining whether imports from or exports to  the other Party are in co mpliance with applicable 
laws or regulations governing impor tations, including those related to the prevention or investigation 
of unlawful shipments. 
8. On the request of either Party, the Parties shall enter into consultations to resolve any 
technical or interpretative difficulties that may arise under this Article or to consider ways to improve 
cooperation. Such consultations ma y occur between the competent authorities of the Parties directly 
or through the Committee on Trade in Goods establi shed in Chapter Two (National Treatment and 
Market Access of Goods). In addition, either Pa rty may request assistance from the other Party in 
implementing this Article. The requested Party sha ll endeavour to respond promptly to the request.  
9. The Parties shall also endeavour to provide each  other with technical advice and information 
for the purpose of improving risk assessment techniques, simplifying and expediting customs procedures, advancing the technical skills of thei r personnel, and enhancing the use of technologies 
that can lead to improved compliance with laws and regulations governing importations. 
10. The Parties shall explore additional avenues of  cooperation for the purpose of enhancing each 
Party’s ability to enforce its laws or regulations  governing importations, including by examining the 
establishment and maintenance of additional channe ls of communication to facilitate the secure and 
rapid exchange of information, and by consider ing efforts to improve effective coordination on 
importation issues, building on the mechanisms established in this Article and the cooperation 
established under any other relevant agreements.  WT/REG184/1 
 Page 61 
 
 
Article 6.6 
 
Confidentiality  
  Each Party shall treat information provided pursuant to this Chapter in accordance with 
Article 22.4 (Disclosure of Information). 
 
Article 6.7 
 
Penalties
 
 
 Each Party shall adopt or maintain measures that provide for the imposition of civil or administrative penalties and, where appropriate, crimin al penalties for violations of its customs laws 
and regulations governing classification, valuation, c ountry of origin, and eligibility for preferential 
treatment under this Agreement. 
 
Article 6.8 
 
Release And Security
 
 1. Each Party shall adopt or maintain procedures: 
(a) providing for the release of goods within a period no greater than that required to 
ensure compliance with its customs laws; 
(b) allowing, to the extent possible, goods to be released within 48 hours of arrival; 
(c) allowing, to the extent possible, goods to be  released at the point of arrival, without 
interim transfer to customs warehouses or other locations; and  
(d) allowing importers who have complied with the procedures that the Party may have 
relating to the determination of value a nd payment of customs duty to withdraw 
goods from customs, although the Party may re quire importers to provide security as 
a condition for the release of goods when such  security is required to ensure that 
obligations arising from the entry of the goods will be fulfilled. 
2. Each Party shall: 
(a) adopt procedures allowing importers: 
(i) to provide security such as bank gu arantees, bonds, or other non-cash 
financial instruments; 
(ii) that regularly enter goods to provide security such as standing bank 
guarantees, continuous bonds, or ot her non-cash financial instruments 
covering multiple entries; and 
(iii) to provide security in any other forms specified by its customs authorities; 
and 
(b) ensure that the amount of any security is no gr eater than that required to ensure that 
obligations arising from the importation of the goods will be fulfilled, and, where 
applicable, shall not be in excess of the amount chargeable, based on tariff rates under WT/REG184/1 
Page 62  
 
domestic and international law, including th is Agreement, and based on valuation in 
accordance with the Customs Valuation Agreement; and 
(c) ensure that any security is discharged as soon as possible after its customs authorities 
are satisfied that tm he obligations arising from the importation of the goods have been fulfilled. 
Article 6.9 
 
Risk Assessment
 
  Each Party shall employ risk management sy stems that enable its customs authorities to 
concentrate inspection activities on high-risk goods and that facilitate the movement of low-risk 
goods, including systems that allow for information regarding an importation to be processed before 
the goods arrive.  
Article 6.10 
 
Express Shipments
 
  Each Party shall adopt or maintain separa te, expedited customs pr ocedures for express 
shipments, while maintaining appropriate custom s control and selection, including procedures:  
 
(a) under which the information necessary for the release of an express shipment may be 
submitted and processed by the Party’s cu stoms authorities before the shipment 
arrives; 
(b) allowing a shipper to submit a single manifest covering all goods contained in a 
shipment transported by the express shipment service through, if possible, electronic 
means; 
(c) that, to the extent possible, minimise th e documentation required for the release of 
express shipments; and 
(d) that, under normal circumstances, allow for an express shipment that has arrived at a 
point of entry to be released no later than six hours after the information necessary for 
release is submitted. 
Article 6.11 
 
Definition Of Customs Matters
 
  For the purposes of this Chapter, customs matters  means matters pertaining to the 
classification and valuation of goods for customs duty purposes, rates of duty, country of origin, and 
eligibility for preferential treatment under this Agr eement, and all other pro cedural and substantive 
requirements, restrictions, and prohibitions that a Party maintains on imports or exports, including 
those pertaining to goods imported or exported by or  on behalf of travellers. Customs matters do not 
include matters pertaining to antidumping or countervailing duties.   
  WT/REG184/1 
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CHAPTER SEVEN: SANITARY AND PHYTOSANITARY MEASURES 
 
Article 7.1 
 
Objectives  
 
 The objectives of this Chapter are to protect human, animal, or plant life or health in the 
Parties’ territories, enhance the Parties’ implem entation of the SPS Agreement, provide a forum for 
addressing bilateral sanitary and phytosanitary matters , resolve trade issues, and thereby expand trade 
opportunities. 
 
Article 7.2 
 
Scope And Coverage  
 
1. This Chapter applies to all sanitary and phytosan itary measures of a Party that may, directly 
or indirectly, affect trade between the Parties. 
2. Neither Party may have recourse to dispute settlement under this Agreement for any matter 
arising under this Chapter. 
Article 7.3 
 
Affirmation Of The SPS Agreement  
  Further to Article 1.1.2, the Parties affirm thei r existing rights and obligations with respect to 
each other under the SPS Agreement.  
Article 7.4 
 
Committee On Sanitary And Phytosanitary Matters
 
 1. The Parties hereby establish a Committee on Sanitary and Phytosanitary Matters 
(“Committee”), comprising representatives of each Party who have responsibility for sanitary and 
phytosanitary matters. 
2. Each Party shall identify its primary represen tative on the Committee and the Parties shall 
establish the Committee’s operating procedures not later th an 30 days after the date of entry into force 
of this Agreement. 
3. The objectives of the Committee shall be to e nhance each Party’s implementation of the SPS 
Agreement, protect human, animal, or plant life or health, enhance cons ultation and cooperation 
between the Parties on sanitary and phytosanitary matt ers, and facilitate trade between the Parties. 
4. The Committee shall seek to enhance and co mplement existing and future relationships 
between the Parties’ agencies responsible for sanitary and phytosanitary matters.  
5. The mandate of the Committee shall be to: 
(a) enhance mutual understanding of each Party’s sanitary and phytosanitary measures 
and the regulatory processes that relate to those measures; 
(b) improve mutual understanding of specific issu es relating to the implementation of the 
SPS Agreement; WT/REG184/1 
Page 64  
 
(c) review progress on and, as appropriate, reso lve through mutual consent, sanitary and 
phytosanitary matters that may arise betw een the Parties’ agen cies responsible for 
such matters; and 
(d) consult on: 
(i) matters related to the developmen t or application of sanitary and 
phytosanitary measures that affect, or may affect, trade between the Parties; 
(ii) issues, positions, and agendas for meetings of the WTO SPS Committee, the 
Codex Alimentarius Commission  and its subsidiary bodies, the International 
Plant Protection Convention, the In ternational Office of Epizootics , and other 
international and regional fora on food  safety and human, animal, or plant 
health; and 
(iii) technical cooperation activities on sanitary and phytosanitary matters. 
6. Each Party shall ensure that the appropriate representatives responsible for the development, 
implementation, and enforcement of sanitary and ph ytosanitary measures from its relevant trade and 
regulatory agencies participate in meetings of the Committee.  
7. The Committee shall meet within 45 days after the date of entry into force of this Agreement, 
and at least once a year thereafter, unless the Parti es otherwise agree. The Committee shall inform the 
Joint Committee established under Article 21.1 (Joi nt Committee) of the results of each meeting. 
8. The Committee shall perform its work in accord ance with its operating procedures, which it 
may revise at any time. 
9. The Parties hereby establish a Standing T echnical Working Group on Animal and Plant 
Health Measures, as set out in Annex 7-A. 
10. The Committee may establish additional technical  working groups in accordance with its 
mandate. 
Article 7.5 
 
Definitions
 
  For the purposes of this Chapter, sanitary or phytosanitary measure  means any measure 
referred to in Annex A, paragr aph 1, of the SPS Agreement. 
  
ANNEX 7-A 
STANDING TECHNICAL WORKING GROUP ON ANIMAL AND 
PLANT HEALTH MEASURES 
 
Section A : Establishment Of The Standing Technical Working Group 
 
On Animal And Plant Health Measures  
 
1. The Parties establish a Standing Technical Working Group on Animal and Plant Health 
Measures (“Working Group”), with a view to facilitating trade between the Parties to the greatest 
extent possible while preserving each Party’s right to protect animal or plant life or health in its 
territory and respecting each Party’s regulatory sy stems and risk assessment and policy development 
processes.  WT/REG184/1 
 Page 65 
 
 
2. The Working Group shall be co-chaired by th e chief administrators of the Australian 
Government Department of Agriculture, Fisheries a nd Forestry’s Biosecurity Australia and the United 
States Department of Agriculture’s Animal and Pl ant Health Inspection Service (“APHIS”), or the 
respective successor organizations with comparable responsibilities. 
3. Members of the Working Group shall include each Party’s primary representative on the 
Committee on Sanitary and Phytosanitary Matters established under Article 7.4 and representatives of 
appropriate regulatory agencies of each Party. 
4. The Working Group shall provide a forum for: 
(a) resolving specific bilateral animal and plant health matters with a view to facilitating 
trade between the Parties and, whenever possible, achieving consensus on scientific 
issues; 
(b) engaging, at the earliest appropriate poi nt in each Party’s risk assessment and 
regulatory processes, in scien tific and technical exchange  and co-operation regarding 
animal and plant health matters that may, di rectly or indirectly, affect the trade of 
either Party; and 
(c) considering specific measures or sets of measures likely to affect, directly or 
indirectly, trade between the Parties that are designed to protect animal or plant life or 
health within the territory of the importi ng Party from risks arising from the entry, 
establishment, or spread of pests, di seases, disease-carrying organisms or disease-
causing organisms. 
5. The Working Group shall recognise that each Pa rty’s agencies responsible for sanitary and 
phytosanitary matters are undertaking, at any particular time, a range of risk analyses and policy 
development work on matters relating to animal and plan t health that may be of mutual interest to the 
Parties. The Working Group shall undertake, as part  of its regular agenda, to update its members on 
the progress of work related to bilateral trade, co mplementing and without prejudice to exchanges in 
other fora, including the annual bilateral dialogues between APHIS and Biosecurity Australia on plant 
and animal health matters. 
6. The Working Group shall establish a work program, including issues that shall be the subject 
of specific work plans, in accord ance with Section B of this Anne x, taking into account the resource 
constraints of each Party and the need to develop an  agenda that balances the needs of both Parties, 
including through identifying and addressing the priority needs of each Party.  
7. The Working Group shall establish operating procedur es within 45 days of the date of entry 
into force of this Agreement. 
8. The co-chairs may agree to appoint sub-grou ps that include, if necessary, subject area 
specialists from within or outside their respective agencies to consider particular technical issues. 
9. The co-chairs shall confer every two months (unless otherwise agreed) on the progress of 
matters on the Working Group’s agenda, including specific work plans estab lished in accordance with 
Section B, by telephone, electronic mail, or in person.  The co-chairs shall submit annual reports to the 
Committee on Sanitary and Phytosanitary Matters  summarising the Working Group’s progress. 
Section B : Development of Specific Work Plans  
 
1. Either Party may request that the Working Gr oup establish a specific work plan to address a 
specific sanitary and phytosanitary measure, project, or issue of particular interest or concern WT/REG184/1 
Page 66  
 
affecting, directly or indirectly, trade between the Parties. The requesting Party shall provide the 
Working Group with technical information in suppo rt of its preferred approach for resolving the 
matter. 
2. Within 60 days after it receives a request, th e Working Group shall develop a specific work 
plan to conduct technical and scientific exchanges on the matter with a view to reaching consensus on 
resolution of the issue. The work  plan shall identify specific ac tivities to be carried out by the 
Working Group, including, as appropriate, on:  
(a) the scope and approach proposed for a risk  assessment, and the expertise required for 
the assessment (including the use of expe rts from outside each Party’s agencies 
responsible for sanitary and phytosanitary matters);  
(b) the technical issues, including hazards, to be addressed in a risk assessment; 
(c) the biology and transmission of pests and diseases subject to regulatory control and 
the type or range of risk mitigation measures that may be available to deal with those 
pests and diseases; 
(d) the risk assessment, including the provision of the full risk analysis report at the 
appropriate point in the process of ea ch Party’s responsible agencies;  
(e) matters that may be referred by either Part y to an independent scientific peer review 
or for other independent scientific input; and 
(f) mutually agreeable mitigation measures, where possible. 
3. The Working Group shall establish a timetable for completing the work plan. The Parties 
shall exchange and consider all technical information promptly. 
 
CHAPTER EIGHT: TECHNICAL BARRIERS TO TRADE 
 
Article 8.1 
 
Scope And Coverage
 
  This Chapter applies to all standards, t echnical regulations, and conformity assessment 
procedures of the central government that may, directly or indirectly, affect trade in any product between the Parties, except:  
(a) technical specifications prepared by government bodies for the production or 
consumption requirements of such bodies; and 
(b) sanitary and phytosanitary measures as defi ned in Annex A of the SPS Agreement. 
Article 8.2 
 
Affirmation Of The TBT Agreement
 
  Further to Article 1.1.2, the Parties affirm thei r existing rights and obligations with respect to 
each other under the TBT Agreement.   WT/REG184/1 
 Page 67 
 
 
Article 8.3 
 
Regional Governments  
  Each Party shall provide information to au thorities of regional governments to encourage 
their adherence to this Chapter, as appropriate. 
 
Article 8.4 
 
International Standards
 
 
1. Each Party shall use relevant international standa rds, to the extent provided in Article 2.4 of 
the TBT Agreement, as a basis for its technical regulations. 
2. In determining whether an international st andard, guide, or recommendation within the 
meaning of Articles 2 and 5 and Annex 3 of the TBT Agreement exists, each Party shall apply the 
principles set out in Decisions and Recommendations adopted by the Committee since 1 January 
1995 , G/TBT/1/Rev.8, 23 May 2002, Section IX ( Decision of the Committee on Principles for the 
Development of International Standards, Guides and Recommendations with relation to Articles 2, 5 
and Annex 3 of the Agreement ), issued by the WTO Committee on Technical Barriers to Trade. 
3. The Parties shall consult and exchange view s on matters under discussion in relevant 
international or regional bodies that develop stan dards, guidelines, recommendations, or policies 
relevant to this Chapter. 
Article 8.5 
 
Technical Regulations  
 
1. Each Party shall give positive consideration to accepting as equivalent technical regulations 
of the other Party, even if these regulations diffe r from its own, provided it is satisfied that these 
regulations adequately fulfil th e objectives of its regulations. 
2. Where a Party does not accept a technical regulati on of the other Party as equivalent to its 
own, it shall, at the request of the other Party, expl ain its reasons. The Parties will, if they so agree, 
give further consideration to whether a Party shoul d accept a particular regulation as equivalent to its 
own and consider establishing an ad hoc  working group, as provided for in Article 8.9.3, for this 
purpose. 
3. Neither Party may have recourse to dispute settlement under this Agreement for any matter 
arising under this Article. 
Article 8.6 
 
Conformity Assessment Procedures  
 1. The Parties recognise that a broad range of mechan isms exists to facilitate the acceptance in a 
Party’s territory of the results of conformity assessment procedures conducted in the other Party’s 
territory. For example: 
(a) the importing Party may rely on a supplier’s declaration of conformity; 
(b) conformity assessment bodies located in each Party’s territory may enter into 
voluntary arrangements to accept the results of each other’s assessment procedures; WT/REG184/1 
Page 68  
 
(c) a Party may agree with the other Party to accept the results of conformity assessment 
procedures that bodies located in the other Pa rty’s territory conduct with respect to 
specific technical regulations; 
(d) a Party may adopt accreditation procedures for qualifying conformity assessment 
bodies located in the territory of the other Party; 
(e) a Party may designate conformity assessment  bodies located in the territory of the 
other Party; and 
(f) a Party may facilitate the consideration of a request by the other Party to recognise 
the results of conformity assessment pr ocedures conducted by bodies in the other 
Party’s territory, including through negotia tion of agreements in a sector nominated 
by that other Party. 
The Parties shall exchange information on these and other similar mechanisms with a view to 
facilitating acceptance of conformity assessment results.  2. Where a Party does not accept the results of a conformity assessment procedure conducted in 
the territory of the other Party, it shall, on request  of that other Party, explain the reasons for its 
decision. 
3. Each Party shall accredit, approve, license, or otherwise recognise conformity assessment 
bodies in the territory of the other Party on te rms no less favourable than those it accords to 
conformity assessment bodies in its territory. Where a Party accredits, approves, licenses, or otherwise 
recognises a body assessing conformity with a specific technical regulation or standard in its territory 
and refuses to accredit, approve, license, or othe rwise recognise a body assessing conformity with that 
technical regulation or standard in the territory of the other Party, it shall, on request of that other 
Party, explain the reasons for its decision. 
4. Where a Party declines a request from the other Pa rty to engage in negotiations or conclude 
an agreement on facilitating recogn ition in its territory of the results of conformity assessment 
procedures conducted by bodies in the other Party’s terr itory, it shall, on request of that other Party, 
explain the reasons for its decision. The Parties will, if they so agree, give further consideration with 
respect to this matter and consider establishing an ad hoc  working group, as provided for in Article 
8.9.3, for this purpose. 
Article 8.7 
 
Transparency
 
 1. Each Party shall allow persons of the other Party to participate in the development of 
standards, technical regulations, and conformity assessment procedures on terms no less favourable 
than those accorded to its own persons. 
2. Each Party shall recommend that non-governmental bodies in its territory observe paragraph 
1 in relation to the development of standards and voluntary conformity assessment procedures. 
3. The Parties acknowledge the importance of tr ansparency in decision-making, including 
providing a meaningful opportunity for persons to provide comments on proposed technical 
regulations and conformity assessment procedures. Where a Party publishes a notice under Article 2.9 
or 5.6 of the TBT Agreement, it shall:  WT/REG184/1 
 Page 69 
 
 
(a) include in the notice a statement describing the objective of the proposed technical 
regulation or conformity assessment procedur e and the rationale for the approach the 
Party is proposing; and 
(b) transmit the proposal electronically to the other Party through the enquiry point the 
Party has established under Article 10 of the TBT Agreement at the same time as it 
notifies WTO Members of the proposal pursuant to the TBT Agreement. 
Each Party should allow at least 60 days after it transmits a proposal under sub-paragraph (b) for the 
public and the other Party to make comments in writing on the proposal.  4. Each Party shall publish, or otherwise make avai lable to the public, in print or electronically, 
its responses to significant comments it receives from the public or the other Party under paragraph 3 
no later than the date it publishes the final technical  regulation or conformity assessment procedure. 
5. Where a Party makes a notification under Article  2.10 or 5.7 of the TBT Agreement, it shall 
at the same time transm it the notification to the other Party electronically through the enquiry point 
referenced in sub-paragraph 3(b). 
6. On request of the other Party, a Party shall pr ovide the other Party information regarding the 
objective of, and rationale for, a standard, technical  regulation, or conformity assessment procedure 
that the Party has adopted or is proposing to adopt. 
Article 8.8 
 
Trade Facilitation
 
 
1. The Parties shall work cooperatively in the fiel ds of standards, technical regulations, and 
conformity assessment procedures with a view to fac ilitating trade between the Parties. In particular, 
the Parties shall seek to identify trade facilitating bilateral initiatives regarding standards, technical 
regulations, and conformity assessment procedures that are appropriate for particular issues or sectors. 
Such initiatives may include cooperation on regulatory issues, such as convergen ce or equivalence of 
technical regulations and standards, alignment with  international standards, reliance on a supplier’s 
declaration of conformity, and use of accreditati on to qualify conformity assessment bodies, as well as 
cooperation through recognition of conformity assessment procedures. 
2. At the request of the other Party, a Part y shall encourage non-governmental bodies in its 
territory to cooperate with the non-governmental bodies in the territory of the other Party with respect 
to particular standards or conformity assessment procedures. 
Article 8.9 
 
Chapter Coordinators  
 
1. In order to facilitate implementa tion of this Chapter and coopera tion between the Parties, each 
Party shall designate a Chapter Coordinator who shal l be responsible for coordinating with interested 
persons in the Party's territory and communicating w ith the other Party’s Coordinator in all matters 
pertaining to this Chapter. The Coor dinators’ functions shall include: 
(a) monitoring the implementation and administration of this Chapter;  
(b) promptly addressing any issue that a Party raises related to the development, 
adoption, application, or enforcement of  standards, technical regulations, or 
conformity assessment procedures; WT/REG184/1 
Page 70  
 
(c) enhancing cooperation in the development a nd improvement of standards, technical 
regulations, and conformity assessment procedures; 
(d) exchanging information on standards, t echnical regulations, and conformity 
assessment procedures, in response to all reasonable requests for such information 
from a Party; 
(e) facilitating the consideration of any sector-s pecific proposal a Party makes for further 
cooperation between conformity assessment bodies, both governmental and nongovernmental, in the territories of the Parties; 
(f) facilitating the consideration of a request that a Party recognise the results of 
conformity assessment procedures conducted by bodies in the other Party’s territory, 
including a request for the negotiation of an agreement, in a sector nominated by that 
other Party; 
(g) facilitating cooperation in the area of speci fic technical regulations by referring 
enquiries from a Party to the appropriate regulatory authorities;  
(h) on request of a Party, consulting on any matter arising under this Chapter; and  
(i) reviewing this Chapter in light of any developments under the TBT Agreement and 
developing recommendations for amendments  to this Chapter in light of those 
developments. 
2. The Coordinators shall communicate with one another by any agreed method that is 
appropriate for the efficient and eff ective discharge of their functions. 
3. Where a matter covered under this Chapter ca nnot be clarified or resolved through the 
Chapter Coordinators, the Parties may establish an ad hoc  technical working group with a view to 
identifying a workable and practical solution that  would facilitate trade. A working group shall 
comprise representatives of the Parties and may include regional government representatives, where 
appropriate, with responsibility for the standards,  technical regulations, or conformity assessment 
procedures in question. Where a Party declines a re quest from the other Party to establish a working 
group, it shall, on request, explain the reasons for its decision.  
Article 8.10 
 
Information Exchange
 
  Any information or explanation that is provide d on request of a Party pursuant to this Chapter 
shall be provided in print or electronically within a reasonable period of time.  
 
Article 8.11 
 
Definitions
 
 
 For the purposes of this Chapter:   technical regulation, standard , and conformity assessment procedures  shall have the 
meanings assigned to those terms in Annex 1 of the TBT Agreement.   
  WT/REG184/1 
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ANNEX 8-A 
 
CHAPTER COORDINATOR 
  For the purposes of Article 8.9, Chapter Coordinators shall be: 
 
(a) in the case of Australia, Department of Industry, Tourism and Resources, or its 
successor; and 
(b) in the case of the United States, the Office of the U.S. Trade Representative, or its 
successor. 
 
CHAPTER NINE: SAFEGUARDS 
 
Article 9.1 
 
Imposition Of A Safeguard Measure
 
 
 During the transition period, if as a result of the reduction or elimination of a customs duty under this Agreement, an originating good of the othe r Party is being imported into the territory of a 
Party in such increased quantities, in absolute te rms or relative to domestic production, and under 
such conditions that the imports of such origina ting good from the other Part y constitute a substantial 
cause of serious injury, or threat thereof, to a domestic industry producing a like or directly 
competitive good, that Party may:  
(a) suspend the further reduction of any rate of customs duty on the good provided for 
under this Agreement for the good; 
(b) increase the rate of customs duty on the good to a level not to exceed the lesser of 
(i) the most-favoured-nation (MFN) applied rate  of duty on the good in effect at 
the time the action is taken; and 
(ii) the MFN applied rate of duty on the good in effect on the day immediately 
preceding the date of entry into force of this Agreement; or 
(c) in the case of a customs duty applied to a good on a seasonal basis, increase the rate 
of duty to a level not to exceed the lesser of  
(i) the MFN applied rate of duty that was in effect on the good for the 
immediately preceding corresponding season; and 
(ii) the MFN applied rate of duty that was in effect on the good on the day 
immediately preceding the date of entr y into force of this Agreement. 
Article 9.2 
 
Conditions And Limitations
 
  Each Party shall apply the following conditions and limitations with regard to a safeguard 
measure: 
 WT/REG184/1 
Page 72  
 
1. A Party shall notify the other Party in writing upo n initiation of an investigation described in 
paragraph 2 and shall consult with the other Party as far in advance of taking a safeguard measure as 
practicable, with a view to reviewing the informa tion arising from the investigation, exchanging views 
on the measure and, as set out in Article 9.4, reach ing an agreement on compensation. The Party shall 
also notify the other Party before taking a provisi onal safeguard measure pursuant to Article 9.3 and 
shall immediately initiate consultations with  the other Party after taking such a measure. 
2. A Party shall take a safeguard measure only following an investigation by that Party’s 
competent authorities in accordance with Articles 3 and 4.2(c) of the Safeguards Agreement; and to 
this end, Articles 3 and 4.2(c) of the Safeguards Ag reement are incorporated into and made a part of 
this Agreement, mutatis mutandis . 
3. In the investigation described in paragraph 2, a Party shall comply with the requirements of 
Article 4.2(a) of the Safeguards Agreement; and to th is end, Article 4.2(a) is incorporated into and 
made a part of this Agreement, mutatis mutandis .  
4. Each Party shall ensure that its competent aut horities complete any such investigation within 
one year of its date of initiation. 
5. Neither Party may maintain a safeguard measure: 
(a) except to the extent, and for such time, as may be necessary to prevent or remedy 
serious injury and to facilitate adjustment; 
(b) for a period exceeding two years; except that the period may be extended by up to 
two years if the competent authorities determine, in conformity with the procedures set out in paragraphs 1 through 4, that the safeguard measure continues to be 
necessary to prevent or remedy serious inju ry and to facilitate adjustment and that 
there is evidence that the industry is adjusting; or 
(c) beyond the expiration of the transition period, except with the consent of the other 
Party. 
6. Neither Party may impose a safeguard measure more than once on the same good. 
7. Where the expected duration of the measure is over one year, the importing Party shall ensure 
that the measure is progressively liberalized at regular intervals. 
8. When a Party terminates a safeguard measure, the rate of customs duty shall be no higher than 
the rate that, according to the Party’s Schedule to An nex 2-B (Tariff Eliminatio n), would have been in 
effect one year after the initiation of the measure. Beginning on January 1 of  the year following the 
termination of the action, the Party shall: 
(a) apply the rate of duty set out in the Party’ s Schedule to Annex 2-B as if the safeguard 
measure had never been applied; or 
(b) eliminate the tariff in equal annual stages e nding on the date set out in the Party’s 
Schedule to Annex 2-B for the elimination of the tariff.  WT/REG184/1 
 Page 73 
 
 
Article 9.3 
 
Provisional Safeguard Measures  
  In critical circumstances where delay would cause damage which it would be difficult to 
repair, a Party may take a safeguard measure on a provisional basis pursuant to a preliminary 
determination that there is clear evidence that im ports of an originating good from the other Party 
have increased as the result of the reduction or e limination of a customs duty under this Agreement, 
and such imports constitute a substa ntial cause of serious injury, or threat thereof, to the domestic 
industry. The duration of such a provisional measure shall not exceed 200 days, during which time the 
requirements of Articles 9.2.2 and 9.2.3 shall be me t. Any tariff increases shall be promptly refunded 
if the investigation described in Article 9.2.2 do es not result in a finding that the requirements of 
Article 9.1 are met. The duration of any provisional  measure shall be counted as part of the period 
described in Article 9.2.5.  
Article 9.4 
 
Compensation
 
 1. The Party applying a safeguard measure shall, in consultation with the Party whose goods are 
subject to a safeguard measure, provide to that Pa rty mutually agreed trade liberalizing compensation 
in the form of concessions having substantially equiva lent trade effects or equivalent to the value of 
the additional duties expected to result from the me asure. Such consultations shall begin within 30 
days of the imposition of the measure.  
2. If the Parties are unable to agree on compensa tion within 30 days after the consultations 
commence, the Party against whose originating good the measure is applied may suspend the 
application of concessions with respect to origina ting goods of the other Party that have trade effects 
substantially equivalent to  the safeguard measure. 
3. A Party shall notify the other Party in writing at least 30 days before suspending concessions 
under paragraph 2. 
4. The obligation to provide compensation unde r paragraph 1 and the right to suspend 
substantially equivalent concessi ons under paragraph 2 shall term inate on the later of: (a) the 
termination of the safeguard measure, and (b) the date  on which the rate of customs duty returns to the 
rate of duty set out in the Party’s Schedule to Annex 2-B. 
Article 9.5 
 
Global Safeguard Measures
 
 
 Each Party retains its rights and obliga tions under Article XIX of GATT 1994 and the 
Safeguards Agreement. This Agreement does not conf er any additional rights or obligations on the 
Parties with regard to global safeguard measures,  except that a Party taking a global safeguard 
measure may exclude imports of an originating good  from the other Party if such imports are not a 
substantial cause of serious injury or threat thereof.  
 
Article 9.6 
 
Definitions  
 
 For the purposes of this Chapter: 
 WT/REG184/1 
Page 74  
 
1. domestic industry  means the producers as a whole of the like or directly competitive product 
operating in the territory of a Party, or those whose collective output of the like or directly competitive products constitutes a major proporti on of the total domestic  production of those 
products; 
2. global safeguard measure  means a measure applied under Article XIX of GATT 1994 and 
the WTO Agreement on Safeguards; 
3. safeguard measure  means a safeguard measure described in Article 9.1; 
4. serious injury  means a significant overall impairment in the position of a domestic industry; 
5. substantial cause  means a cause which is important and not less than another cause; 
6. threat of serious injury  means serious injury that, on the basis of facts and not merely on 
allegation, conjecture, or remote possibility, is clearly imminent; and 
7. transition period  means the ten-year period following en try into force of this Agreement, 
except that for any good for which the Schedule in  Annex 2-B of the Party applying the measure 
provides for the Party to eliminate its tariffs on the good over a period of more than ten years, 
transition period  shall mean the tariff elimination period for the good. 
 
CHAPTER TEN: CROSS-BORDER TRADE IN SERVICES 
 
Article 10.1 
 
Scope And Coverage
 
 
1. This Chapter applies to measures adopted or maintained by a Party affecting cross-border 
trade in services by service suppliers of the other Party. Such measures include measures affecting: 
(a) the production, distribution, marketing, sale, and delivery of a service; 
(b) the purchase or use of, or payment for, a service; 
(c) the access to and use of distribution, trans port, or telecommunications networks and 
services in connection with the supply of a service;  
(d) the presence in its territory of a service supplier of the other Party; and  
(e) the provision of a bond or other form of financial security as a condition for the 
supply of a service. 
2. For the purposes of this Chapter, measures adopted or maintained by a Party  means 
measures adopted or maintained by: 
(a) central, regional, or local governments and authorities; and 
(b) non-governmental bodies in the exercise of powers delegated by central, regional, or 
local governments or authorities. 
3. Articles 10.4, 10.7, and 10.8 shall also apply to measures by a Party affecting the supply of a 
service in its territory by a covered investment.  WT/REG184/1 
 Page 75 
 
 
4. This Chapter does not apply to: 
(a) financial services as defined in Article 13. 19 (Definitions), except that paragraph 3 
shall apply where the financial service is s upplied by a covered investment that is not 
a covered investment in a financial institu tion (as defined in Article 13.19) in the 
Party’s territory; 
(b) government procurement; 
(c) air services, including domestic and international air transportation services, whether 
scheduled or non-scheduled, and related services in support of air services, other than: 
(i) aircraft repair and maintenance services during which an aircraft is 
withdrawn from service; and 
(ii) specialty air services; 
(d) subsidies or grants provided by a Party, including government-supported loans, 
guarantees, and insurance; or 
(e) services supplied in the exercise of governme ntal authority within the territory of 
each respective Party, as defined in Article 1.2.22. 
5. This Chapter does not impose any obligation on a Party with respect to a national of the other 
Party seeking access to its employment market, or empl oyed on a permanent basis in its territory, and 
does not confer any right on that national with respect to that access or employment. 
Article 10.2 
 
National Treatment
 
  Each Party shall accord to service suppliers of the other Party treatment no less favourable than that it accords, in like circumstan ces, to its own service suppliers.  
 
Article 10.3 
 
Most-Favoured-Nation Treatment
 
  Each Party shall accord to service suppliers of the other Party treatment no less favourable than that it accords, in like circumstance s, to service suppliers of a non-Party.  
 
Article 10.4 
 
Market Access
 
 
 Neither Party may adopt or maintain, either on the basis of a regional subdivision or on the 
basis of its entire territory, measures that:  
(a) impose limitations on: 
(i) the number of service suppliers, whether in the form of numerical quotas, 
monopolies, exclusive service suppliers, or the requirement of an economic 
needs test; WT/REG184/1 
Page 76  
 
(ii) the total value of service transactions or assets in the form of numerical 
quotas or the requirement of an economic needs test;  
(iii) the total number of service operations or the total quantity of services output 
expressed in terms of designated numerical units in the form of quotas or the requirement of an economic needs test;
10-1 or 
(iv) the total number of natural persons that  may be employed in a particular 
service sector or that a service supplier may employ and who are necessary for, and directly related to, the supply of a specific service in the form of numerical quotas or the requirement of an economic needs test; or 
(b) restrict or require specific types of legal entity or joint venture through which a 
service supplier may supply a service. 
Article 10.5 
 
Local Presence
 
 
 Neither Party may require a service supplier of  the other Party to establish or maintain a 
representative office or any form of enterprise, or to  be resident, in its territory as a condition for the 
cross-border supply of a service.   
Article 10.6 
 
Non-Conforming Measures
 
 1. Articles 10.2, 10.3, 10.4, and 10.5 do not apply to: 
(a) any existing non-conforming measure that  is maintained by a Party at: 
(i) the central level of government, as set out by that Party in its Schedule to 
Annex I; 
(ii) a regional level of government, as set out  by that Party in its Schedule to 
Annex I; or 
(iii) a local level of government; 
(b) the continuation or prompt renewal of an y non-conforming measure referred to in 
sub-paragraph (a); or 
(c) an amendment to any non-conforming measure referred to in sub-paragraph (a) to the 
extent that the amendment does not decr ease the conformity of the measure, as it 
existed immediately before the amendment, with Articles 10.2, 10.3, 10.4, or 10.5. 
2. Articles 10.2, 10.3, 10.4, and 10.5 do not apply to any measure that a Party adopts or 
maintains with respect to sectors, sub-sectors, or  activities as set out in its Schedule to Annex II. 
                                                     
 
10-1 This paragraph does not cover measures of a Party which limit inputs for the supply of services.  WT/REG184/1 
 Page 77 
 
 
Article 10.7 
 
Domestic Regulation  
 1. Where a Party requires authorization for the supply of a service, the Party’s competent 
authorities shall, within a reasonable time after the submission of an application considered complete 
under its laws and regulations, inform  the applicant of the decision concerning the application. At the 
request of the applicant, the competent authorities of the Party shall provide, without undue delay, information concerning the status of the application.  This obligation shall not apply to authorization 
requirements that a Party adopts or maintains with respect to sectors, sub-sectors, or activities as set 
out in its Schedule to Annex II. 
2. With a view to ensuring that measures relating to qualification requirements and procedures, 
technical standards, and licensing requirements do not constitute unnecessary barriers to trade in 
services, each Party shall endeavour to ensure, as appropriate for individual sectors, that such 
measures are: 
(a) based on objective and transparent criteria, such as competence and the ability to 
supply the service; 
(b) not more burdensome than necessary to en sure the quality of the service; and 
(c) in the case of licensing procedures, not in th emselves a restriction on the supply of 
the service. 
3. If the results of the negotiations related to Artic le VI:4 of GATS (or the results of any similar 
negotiations undertaken in other multila teral fora in which both Parties participate) enter into effect, 
this Article shall be amended, as appropriate, afte r consultations between the Parties, to bring those 
results into effect under this Agreement. The Pa rties shall coordinate on such negotiations, as 
appropriate. 
Article 10.8 
 
Transparency In Development And Application Of Regulations
 
  Further to Chapter Twenty (Transparency):  1. Each Party shall maintain or establish appropr iate mechanisms for responding to inquiries 
from interested persons regarding its regulations relating to the subject matter of this Chapter. 
2. If a Party does not provide advance notice and opportunity for comment pursuant to Article 
20.2 (Publication), it shall, to the extent possi ble, address in writing the reasons therefore. 
3. At the time it adopts final regulations relating to the subject matter of this Chapter, each Party 
shall, to the extent possible, including on request , address in writing substantive comments received 
from interested persons with resp ect to the proposed regulations.  
4. To the extent possible, each Party shall provide notice of the requirements of final regulations 
prior to their effective date. WT/REG184/1 
Page 78  
 
Article 10.9 
 
Recognition
 
 1. For the purposes of fulfilment, in whole or in  part, of its standards or criteria for the 
authorisation, licensing, or certification of servi ces suppliers, and subject to the requirements of 
paragraph 4, a Party may recognise the education or experience obtained, requirements met, or 
licences or certifications granted in a particular  country. Such recognition, which may be achieved 
through harmonisation or otherwise, may be based on an agreement or arrangement with the country 
concerned or may be accorded autonomously. 
2. Where a Party recognizes, autonomously or by agreement or arrangement, the education or 
experience obtained, requirements met, or licenses or  certifications granted in the territory of a non-
Party, nothing in Article 10.3 shall be construed to  require the Party to accord such recognition to the 
education or experience obtained, requirements me t, or licenses or certifications granted in the 
territory of the other Party. 
3. A Party that is a party to an agreement or arra ngement of the type referred to in paragraph 1, 
whether existing or future, shall afford adequate oppor tunity for the other Party, if the other Party is 
interested, to negotiate accession to such an agreem ent or arrangement or to negotiate a comparable 
one with it. Where a Party accords recognition auto nomously, it shall afford adequate opportunity for 
the other Party to demonstrate that education, experience, licenses, or certifications obtained or 
requirements met in that other Party’s territory should be recognized. 
4. A Party shall not accord recognition in a manner which would constitute a means of 
discrimination between countries in the application of  its standards or criteria for the authorization, 
licensing, or certification of services suppliers, or a disguised restriction on trade in services. 
5. Annex 10-A (Professional Services) applies to measures adopted or maintained by a Party 
relating to the licensing or certification of professi onal service suppliers as set out in that Annex. 
Article 10.10 
 
Transfers And Payments
 
 1. Each Party shall permit all transfers and paym ents relating to the cross-border supply of 
services to be made freely and without delay into and out of its territory. 
2. Each Party shall permit such transfers and pa yments relating to the cross-border supply of 
services to be made in a freely usable currency at th e market rate of exchange prevailing on the date 
of transfer. 
3. Notwithstanding paragraphs 1 and 2, a Party ma y prevent or delay a transfer or payment 
through the equitable, non-discriminatory, and g ood faith application of  its laws relating to: 
(a) bankruptcy, insolvency, or the protection of the rights of creditors; 
(b) issuing, trading, or dealing in securiti es, futures, options, or derivatives; 
(c) financial reporting or record keeping of  transfers when necessary to assist law 
enforcement or financial regulatory authorities; 
(d) criminal or penal offences; or  WT/REG184/1 
 Page 79 
 
 
(e) ensuring compliance with orders or judgments in judicial or administrative 
proceedings. 
Article 10.11 
 
Denial Of Benefits  
 
1. A Party may deny the benefits of this Chapter to a service supplier of the other Party if the 
service supplier is an enterprise owned or controlled by persons of a non-Party, and the denying Party: 
(a) does not maintain diplomatic relations with the non-Party; or 
(b) adopts or maintains measures with respect to the non-Party or a person of the non-
Party that prohibit transactions with the enterprise or that would be violated or 
circumvented if the benefits of this Ch apter were accorded to the enterprise.  
2. A Party may deny the benefits of this Chapter to a service supplier of the other Party if the 
service supplier is an enterprise owned or controlled by persons of a non-Party or of the denying Party 
that has no substantial business activities in  the territory of the other Party. 
Article 10.12 
 
Specific Commitments  
 
Express Delivery Services 
 1. For the purposes of this Chapter, express delivery services  means the collection, transport, 
and delivery, of documents, printed matter, parcel s, or other items on an expedited basis, while 
tracking and maintaining control of these items th roughout the supply of the service. Express delivery 
services do not include (i) air transport services, (ii)  services supplied in the exercise of governmental 
authority, as defined in Article 1.2.22,  or (iii) maritime transport services.
10-2 
2. The Parties confirm their desire to maintain at  least the level of market openness for express 
delivery services that is in existence on the date this  Agreement is signed. If a Party considers that the 
other Party is not maintaining such level of access, it may request consultations. The other Party shall 
afford adequate opportunity for cons ultations and, to the extent possible, shall provide information in 
response to inquiries regarding the le vel of access and any related matter. 
3. Each Party confirms its intention to prevent the direction of revenues derived from monopoly 
postal services to confer an advantage to its ow n or any other competitive supplier’s express delivery 
services in a manner inconsistent with that Party’ s laws and practices applicable to the monopoly 
supply of postal services. 
4. For greater certainty, this Agreement, in cluding Articles 14.3 (Designated Monopolies) and 
14.5 (State Enterprises and Related Matters), applies to express delivery services.  
                                                      
10-2 For greater clarity, express de livery services do not include: 
 
(a) for the United States, delivery of letters subj ect to the Private Express Statutes (18 U.S.C. 
1693 et seq., 39 U.S.C. 601 et seq.), but do include delivery of letters subject to the exceptions 
to, or suspensions promulgated under, those statutes, which permit private delivery of extremely urgent letters; and 
(b) for Australia, services reserved for exclusive supply by Australia Post as set out in the 
Australian Postal Corporation Act 1989 and its subordinate legislation and regulations. WT/REG184/1 
Page 80  
 
Article 10.13 
 
Implementation
 
 
 The Parties shall meet annually, or as otherw ise agreed, on issues related to implementation 
of this Chapter and any other issues of mutu al interest affecting trade in services.  
 
Article 10.14 
 
Definitions  
 
 For the purposes of this Chapter:  1. cross-border trade in services or cross-border supply of services means  the supply of a 
service: 
(a) from the territory of one Party into the territory of the other Party; 
(b) in the territory of one Party by a person of that Party to a person of the other Party; or 
(c) by a national of a Party in the territory of the other Party; 
but does not include the supply of a service in the territory of a Party by a covered investment;  
 2. enterprise  means an enterprise as defined in Article 1.2.7 (General Definitions), and a branch 
of an enterprise; 
3. enterprise of a Party  means an enterprise organized or c onstituted under the laws of a Party, 
and a branch located in the territory of a Pa rty and carrying out business activities there;  
4. freely usable currency  means a currency determined by the International Monetary Fund 
under its Articles of Agreement  to be a currency that is, in fact, widely used to make payments for 
international transactions and is widely trad ed in the principal exchange markets;  
5. professional services  means services, the supply of which requires specialized postsecondary 
education, or equivalent training or experience, and for which the right to practice is granted or 
restricted by a Party, but does not include services supplied by trades-persons or vessel and aircraft crew members; 
6. service supplier of a Party  means a person of that Party that seeks to supply or supplies a 
service;
10-3 and  
7. specialty air services  means any non-transportation air services, such as aerial firefighting, 
sightseeing, spraying, surveying, mapping, photog raphy, parachute jumping, glider towing, and 
helicopter-lift for logging and constr uction, and other airborne agricultural, industrial, and inspection 
services. 
                                                      
10-3 For the purposes of Articles 10.2 and 10.3, service suppliers  has the same meaning as “services 
and service suppliers” as used in  Articles II and XVII of GATS.  WT/REG184/1 
 Page 81 
 
 
ANNEX 10-A 
 
PROFESSIONAL SERVICES 
 
Development Of Professional Services 
 
1. The Parties shall encourage the relevant bodi es in their respective territories to develop 
mutually acceptable standards and criteria for licensing and certification of professional services suppliers and to provide recommendations on mu tual recognition to the Joint Committee.  
2. The standards and criteria referred to in paragr aph 1 may be developed with regard to the 
following matters: 
(a) education – accreditation of schools or academic programs; 
(b) examinations – qualifying examinations fo r licensing, including alternative methods 
of assessment, such as oral examinations and interviews;  
(c) experience – length and nature of experience required for licensing;  
(d) conduct and ethics – standards of professional conduct and the nature of disciplinary 
action for non-conformity with those standards; 
(e) professional development and re-certificati on – continuing educ ation and ongoing 
requirements to maintain professional certification; 
(f) scope of practice – extent of, or limitations on, permissible activities; 
(g) local knowledge – requirements for knowle dge of such matters as local laws, 
regulations, geography, or climate; and 
(h) consumer protection – alternatives to r esidency requirements, including bonding, 
professional liability insurance, and client  restitution funds, to provide for the 
protection of consumers. 
3. On receipt of a recommendation referred to in paragraph 1, the Joint Committee shall review 
the recommendation within a reasonable time to de termine whether it is consistent with this 
Agreement. Based on the Joint Committee’s revi ew, each Party shall encourage its respective 
competent authorities, where appropriate, to implem ent the recommendation within a mutually agreed 
time. 
Temporary Licensing 
 
4. Where the Parties agree, each Party shall enc ourage the relevant bodies in its territory to 
develop procedures for the temporary licensing of professional services suppliers of the other Party. 
Working Group On Professional Services 
 5. The Parties shall establish a Professional Services Working Group, comprising 
representatives of each Party, to facilitate  the activities listed in paragraph 1.  
6. In pursuing this objective, the Working Grou p shall consider, as a ppropriate, relevant 
bilateral, plurilateral and multilateral ag reements relating to professional services. WT/REG184/1 
Page 82  
 
7. The issues that the Working Group should consid er, for professional services generally and, 
as appropriate, for individual professional services, include: 
(a) procedures for fostering the developmen t of mutual recognition arrangements 
between their relevant professional bodies; 
(b) the feasibility of developing model procedures for the licensing and certification of 
professional services suppliers; and 
(c) other issues of mutual interest relating to the supply of professional services. 
8. To facilitate the efforts of the Working Group,  each Party shall consult with the relevant 
bodies in its territory to seek to identify prof essional services to which the Working Group should 
give consideration. 
9. The Working Group shall report to the Join t Committee on its progress, including with 
respect to any recommendations for initiatives to promote mutual recognition of standards and 
criteria, and on the further direction of its work, within two years of the entry into force of the 
Agreement. 
Review 
 
10. The Joint Committee shall, at least once every th ree years, review the implementation of this 
Annex 
 
CHAPTER ELEVEN: INVESTMENT 
 
Article 11.1 
 
Scope And Coverage
 
 
1. This Chapter applies to measures adopted or maintained by a Party relating to: 
(a) investors of the other Party; 
(b) covered investments; and 
(c) with respect to Articles 11.9 and 11.11, all i nvestments in the territory of the Party.  
2. For greater certainty, nothing in this Chapter imposes an obligation on a Party to privatise. 
Article 11.2 
 
Relation To Other Chapters  
 1. In the event of any inconsistency between this Chapter and another Chapter, the other Chapter 
shall prevail to the extent of the inconsistency. 
2. A requirement by a Party that a service supplier of the other Party post a bond or other form 
of financial security as a condition of the cross-border supply of a service does not of itself make this 
Chapter applicable to measures adopted or mainta ined by the Party relating to such cross-border 
supply of the service. This Chapter applies to measur es adopted or maintained by the Party relating to  WT/REG184/1 
 Page 83 
 
 
the posted bond or financial security, to the extent that su ch bond or financial security is a covered 
investment. 
3. This Chapter does not apply to measures adopted or maintained by a Party to the extent that 
they are covered by Chapter Th irteen (Financial Services). 
Article 11.3 
 
National Treatment  
 1. Each Party shall accord to investors of the othe r Party treatment no less favourable than that it 
accords, in like circumstances, to its own investor s with respect to the establishment, acquisition, 
expansion, management, conduct, operation, and sale or other di sposition of investments in its 
territory. 
2. Each Party shall accord to covered investme nts treatment no less favourable than that it 
accords, in like circumstances, to investments in its territory of its own investors with respect to the 
establishment, acquisition, expansion, management , conduct, operation, and sale or other disposition 
of investments. 
Article 11.4 
 
Most-Favoured Nation Treatment
 
 1. Each Party shall accord to investors of the othe r Party treatment no less favourable than that it 
accords, in like circumstances, to investors of any non-Party with respect to the establishment, 
acquisition, expansion, management , conduct, operation, and sale or other disposition of investments 
in its territory. 
2. Each Party shall accord to covered investme nts treatment no less favourable than that it 
accords, in like circumstances, to investments in its territory of investor s of any non-Party with 
respect to the establishment, acquisition, expans ion, management, conduct, operation, and sale or 
other disposition of investments. 
Article 11.5 
 
Minimum Standard Of Treatment
11-1 
 
1. Each Party shall accord to covered investment s treatment in accordance with the customary 
international law minimum standard of treatment of aliens, including fair and equitable treatment and 
full protection and security. 
2. For greater certainty, the concepts of “fair and equitable treatment” and “full protection and 
security” do not require treatment in addition to or be yond that which is required by that standard, and 
do not create additional substantive rights. Th e obligation in paragraph 1 to provide: 
(a) “fair and equitable treatment” includes the ob ligation not to deny justice in criminal, 
civil, or administrative adjudicatory proceed ings in accordance with the principle of 
due process embodied in the principal legal systems of the world; and 
(b) “full protection and security” requires each Party to provide the level of police 
protection required under customary international law.  
                                                      
11-1 Article 11.5 shall be interprete d in accordance with Annex 11-A. WT/REG184/1 
Page 84  
 
3. A determination that there has been a breach of another provision of this Agreement, or of a 
separate international agreement, does not establish that there has been a breach of this Article. 
Article 11.6 
 
Treatment In Case Of Strife
 
 
1. Notwithstanding Article 11.13.5(b), each Party sh all accord to investors of the other Party, 
and to covered investments, with respect to measu res it adopts or maintains relating to losses suffered 
by investments in its territory owing to armed conflic t or civil strife, treatment no less favourable than 
that it accords, in like circumstances, to: 
(a) its own investors and their investments; and 
(b) investors of any non-Party and their investments. 
2. Notwithstanding paragraph 1, if an investor of  a Party, in the situations referred to in 
paragraph 1, suffers a loss in the territory of the other Party resulting from: 
(a) requisitioning of its covered investment or part thereof by the latter’s forces or 
authorities; or 
(b) destruction of its covered investment or part thereof by the latter’s forces or 
authorities, which was not required by the necessity of the situation,  
the latter Party shall provide the investor with res titution, compensation, or both, as appropriate, for 
such loss. Any compensation shall be prompt, ad equate, and effective in accordance with Article 
11.7.2 through 11.7.4, mutatis mutandis . 
3. Paragraph 1 does not apply to existing measures re lating to subsidies or grants that would be 
inconsistent with Article 11. 3 but for Article 11.13.5(b). 
Article 11.7 
 
Expropriation And Compensation11-2 
 
1. Neither Party may expropriate or nationalise a cove red investment either directly or indirectly 
through measures equivalent to expropriation or nationalisation (“expropriation”), except: 
(a) for a public purpose; 
(b) in a non-discriminatory manner; 
(c) on payment of prompt, adequate, and effective compensation; and 
(d) in accordance with due process of law. 
2. The compensation referred to in paragraph 1(c) shall: 
(a) be paid without delay; 
                                                      
11-2 Article 11.7 shall be interpreted in accordance with Anne xes 11-A and 11-B.  WT/REG184/1 
 Page 85 
 
 
(b) be equivalent to the fair market value of  the expropriated investment immediately 
before the expropriation took place (“the date of expropriation”); 
(c) not reflect any change in value occurr ing because the intended expropriation had 
become known earlier; and 
(d) be fully realisable and freely transferable. 
3. If the fair market value is denominated in a fr eely usable currency or the Australian dollar, the 
compensation referred to in paragraph 1(c) shall be  no less than the fair market value on the date of 
expropriation, plus interest at a commercially reas onable rate for that currency, accrued from the date 
of expropriation until the date of payment. 
4. However, if the fair market value is denominat ed in the Australian dollar and the Australian 
dollar is not transferable on the date of payment at the market rate of exchange, or if it is denominated 
in another currency that is not freely usable, th e compensation referred to in paragraph 1(c) – 
converted into the currency of payment at the mark et rate of exchange prevailing on the date of 
payment – shall be no less than:  
(a) the fair market value on the date of expropriation, converted into a freely usable 
currency at the market rate of exchange prevailing on that date, plus  
(b) interest, at a commercially reasonable rate for that freely usable currency, accrued 
from the date of expropriation until the date of payment. 
5. This Article does not apply to the issuance of  compulsory licenses granted in relation to 
intellectual property rights in accordance with the TR IPS Agreement, or to the revocation, limitation, 
or creation of intellectual property rights, to the exte nt that such issuance, revocation, limitation, or 
creation is consistent with Chapter Seventeen (Intellectual Property Rights).11-3 
Article 11.8 
 
Transfers  
 
1. Each Party shall permit all transfers relating to  a covered investment to be made freely and 
without delay into and out of its territory. Such transfers include: 
(a) contributions to capital, including the initial contribution; 
(b) profits, dividends, capital gains, and proceeds from the sale of all or any part of the 
covered investment or from the partial or complete liquidation of the covered 
investment; 
(c) interest, royalty payments, management fees, and technical assistance and other fees; 
(d) payments made under a contract, including a loan agreement; 
(e) payments made pursuant to Articles 11. 6.1 and 11.6.2 and Article 11.7; and 
(f) payments arising out of a dispute. 
                                                      
11-3 For greater certainty, the reference to the "TRIPS  Agreement" in paragraph 5 includes any waiver 
in force between the Parties of any provision of that Agreement granted by WTO Members in accordance with 
the WTO Agreement.  
 WT/REG184/1 
Page 86  
 
2. Each Party shall permit transfers relating to a covered investment to be made in a freely 
usable currency at the market rate of ex change prevailing at the time of transfer. 
3. Each Party shall permit returns in kind relati ng to a covered investment to be made as 
authorised or specified in a written agreement be tween the Party and a covered investment or an 
investor of the other Party that takes effect on or af ter the date of entry into force of this Agreement. 
4. Notwithstanding paragraphs 1 through 3, a Party may prevent or delay a transfer through the 
equitable, non-discriminatory, and good faith  application of its laws relating to:  
(a) bankruptcy, insolvency, or the protection of the rights of creditors; 
(b) issuing, trading, or dealing in securiti es, futures, options, or derivatives; 
(c) criminal or penal offences; 
(d) financial reporting or record keeping of  transfers when necessary to assist law 
enforcement or financial regulatory authorities; or 
(e) ensuring compliance with orders or judgments in judicial or administrative 
proceedings. 
Article 11.9 
 
Performance Requirements
 
 1. Neither Party may, in connection with th e establishment, acquisition, expansion, 
management, conduct, operation, or sale or other dispos ition of an investment of an investor of a Party 
or of a non-Party in its territory, impose or enfor ce any requirement, or enforce any commitment or 
undertaking, to:
11-4 
(a) export a given level or percentage of goods or services; 
(b) achieve a given level or per centage of domestic content; 
(c) purchase, use, or accord a preference to goods produced in its territory, or to purchase 
goods from persons in its territory; 
(d) relate in any way the volume or value of im ports to the volume or value of exports or 
to the amount of foreign exchange inflow s associated with such investment;  
(e) restrict sales of goods or services in its territory that such investment produces or 
supplies by relating such sales in any way to the volume or value of its exports or foreign exchange earnings; 
(f) transfer a particular technology, a produc tion process, or other proprietary knowledge 
to a person in its territory; or 
(g) supply exclusively from the territory of th e Party the goods that such investment 
produces or the services that such investment supplies to a specific regional market or 
to the world market. 
                                                     
 
11-4 For greater certainty, a condition fo r the receipt or conti nued receipt of an advantage referred to in 
paragraph 2 does not constitute a “commitment or undertaking” for the purposes of paragraph 1.  WT/REG184/1 
 Page 87 
 
 
2. Neither Party may condition the receipt or contin ued receipt of an advantage, in connection 
with the establishment, acquisition, expansion, ma nagement, conduct, operation, or sale or other 
disposition of an investment in its territory of an investor of a Party or of a non-Party, on compliance 
with any requirement to: 
(a) achieve a given level or per centage of domestic content; 
(b) purchase, use, or accord a preference to goods produced in its territory, or to purchase 
goods from persons in its territory; 
(c) relate in any way the volume or value of im ports to the volume or value of exports or 
to the amount of foreign exchange inflow s associated with su ch investment; or 
(d) restrict sales of goods or services in its territory that such investment produces or 
supplies by relating such sales in any way to the volume or value of its exports or 
foreign exchange earnings. 
3. (a) Nothing in paragraph 2 shall be constr ued to prevent a Party from conditioning the 
receipt or continued receipt of an advantage, in connection with an investment in its territory of an investor of a Party or of a non-Party, on compliance with a requirement 
to locate production, supply a service, train or employ workers, construct or expand 
particular facilities, or carry out research and development, in its territory.  
(b) Paragraph 1(f) does not apply: 
(i) when a Party authorises use of an in tellectual property right in accordance 
with Article 17.9.7 (Patents), or to measures requiring the disclosure of proprietary information that fall within the scope of, and are consistent with, 
Article 39 of the TRIPS Agreement; or 
(ii) when the requirement is imposed or the commitment or undertaking is 
enforced by a court, administrative tribunal, or competition authority to remedy a practice determined after judicial or administrative process to be anticompetitive under a Party’s laws relating to the prevention of 
anticompetitive behaviour.
11-5 
(c) Provided that such measures are not applied in an arbitrary or unjustifiable manner, 
and provided that such measures do not constitute a disguised restriction on investment or international trade, paragraphs  1(b), (c), and (f), and 2(a) and (b), shall 
not be construed to prevent a Party from adopting or maintaining measures, including environmental measures: 
(i) necessary to secure compliance with laws and regulations that are not 
inconsistent with this Agreement; 
(ii) necessary to protect human, animal, or plant life or health; or 
(iii) related to the conservation of living  or non-living exhaustible natural 
resources. 
                                                     
 
11-5 The Parties recognize that a patent does  not necessarily confer market power. WT/REG184/1 
Page 88  
 
(d) Paragraphs 1(a), (b), and (c), and 2(a)  and (b), do not apply to qualification 
requirements for goods or services with respect to export promotion and foreign aid programs. 
(e) Paragraphs 1(b), (c), (f), and (g), and 2( a) and (b), do not apply to government 
procurement. 
(f) Paragraphs 2(a) and (b) do not apply to requirements imposed by an importing Party 
relating to the content of goods necessary to qualify for preferential tariffs or preferential quotas. 
4. For greater certainty, paragraphs 1 and 2 do not apply to any requirement other than the 
requirements set out in those paragraphs. 
5. This Article does not preclude enforcement of any commitment, undertaking, or requirement 
between private parties, where a Party did not im pose or require the commitment, undertaking, or 
requirement. 
Article 11.10 
 
Senior Management And Boards Of Directors
 
 1. Neither Party may require that an enterprise of th at Party that is a covered investment appoint 
to senior management positions natural pe rsons of any particular nationality. 
2. A Party may require that a majority or less of the board of directors, or any committee 
thereof, of an enterprise of that Party that is a covered investment, be of a particular nationality, or 
resident in the territory of the Party, provided th at the requirement does not materially impair the 
ability of the investor to exercise control over its investment. 
Article 11.11 
 
Investment And Environment
 
 
 Nothing in this Chapter shall be construed to  prevent a Party from adopting, maintaining, or 
enforcing any measure otherwise consistent with this  Chapter that it considers appropriate to ensure 
that investment activity in its territory is undertak en in a manner sensitive to environmental concerns. 
 
Article 11.12 
 
Denial Of Benefits  
 1. A Party may deny the benefits of this Chapter to an investor of the other Party that is an 
enterprise of such other Party and to investments of  that investor if persons of a non-Party own or 
control the enterprise and the denying Party: 
(a) does not maintain diplomatic relations with the non-Party; or 
(b) adopts or maintains measures with respect to the non-Party or a person of the non-
Party that prohibit transactions with the enterprise or that would be violated or circumvented if the benefits of this Chap ter were accorded to the enterprise or its 
investments.  WT/REG184/1 
 Page 89 
 
 
2. A Party may deny the benefits of this Chapter to an investor of the other Party that is an 
enterprise of such other Party and to investments of  that investor if the enterprise has no substantial 
business activities in the territory of the other Party and persons of a non-Party, or of the denying 
Party, own or control the enterprise. 
Article 11.13 
 
Non-Conforming Measures  
 1. Articles 11.3, 11.4, 11.9, and 11.10 do not apply to: 
(a) any existing non-conforming measure that  is maintained by a Party at: 
(i) the central level of government, as set out by that Party in its Schedule to 
Annex I, 
(ii) a regional level of government, as set out  by that Party in its Schedule to 
Annex I, or 
(iii) a local level of government; 
(b) the continuation or prompt renewal of an y non-conforming measure referred to in 
sub-paragraph (a); or 
(c) an amendment to any non-conforming measure referred to in sub-paragraph (a) to the 
extent that the amendment does not decr ease the conformity of the measure, as it 
existed immediately before the amendment, with Article 11.3, 11.4, 11.9, or 11.10. 
2. Articles 11.3, 11.4, 11.9, and 11.10 do not a pply to any measure that a Party adopts or 
maintains with respect to sectors, sub-sectors, or activities, as set out in its Schedule to Annex II.  
3. Neither Party may, under any measure adopted after the date of entry into force of this 
Agreement and covered by its Schedul e to Annex II, require an investor of the other Party, by reason 
of its nationality, to sell or otherwise dispose of  an investment existing at the time the measure 
becomes effective. 
4. Articles 11.3 and 11.4 do not apply to any measure that is an exception to, or derogation from, 
the obligations under Article 17.1.6 (National Treat ment) as specifically provided in that Article. 
5. Articles 11.3, 11.4, and 11.10 do not apply to: 
(a) government procurement; or 
(b) subsidies or grants provided by a Party, including government-supported loans, 
guarantees, and insurance. 
Article 11.14 
 
Special Formalities And Information Requirements
 
 1. Nothing in Article 11.3 shall be construed to prevent a Party from adopting or maintaining a 
measure that prescribes special formalities in co nnection with covered investments, such as a 
requirement that investors be residents of the Part y or that covered investments be legally constituted 
under the laws or regulations of the Party, provided  that such formalities do not materially impair the WT/REG184/1 
Page 90  
 
protections afforded by a Party to investors of the other Party and covered investments pursuant to 
this Chapter. 
2. Notwithstanding Articles 11.3 and 11.4, a Party may require an investor of the other Party, or 
a covered investment, to provide in formation concerning that investment solely for informational or 
statistical purposes. The Party shall protect any confidential information from any disclosure that 
would prejudice the competitive position of the investor  or the covered investment. Nothing in this 
paragraph shall be construed to prevent a Party fro m otherwise obtaining or disclosing information in 
connection with the equitable and go od faith application of its law.  
Article 11.15 
 
Implementation
 
  The Parties shall meet annually, or as agreed ot herwise, to discuss the implementation of this 
Chapter and other issues of mutual interest, incl uding the operation of their respective investment 
regimes. 
 
Article 11.16 
 
Consultations On Investor-State Dispute Settlement
 
 1. If a Party considers that there has been a change  in circumstances affecting the settlement of 
disputes on matters within the scope of this Chapte r and that, in light of such change, the Parties 
should consider allowing an investor of a Party to submit to arbitration with the other Party a claim 
regarding a matter within the scope of this Chapter,  the Party may request consultations with the other 
Party on the subject, including the development of procedures that may be appropriate. On such a 
request, the Parties shall promptly enter into consul tations with a view towards allowing such a claim 
and establishing such procedures. 
2. For greater certainty, nothing in this Article prevents a Party from raising any matter arising 
under this Chapter pursuant to the procedures set out  in Chapter 21 (Institutional Arrangements and 
Dispute Settlement). Nor does anything in this Artic le prevent an investor of a Party from submitting 
to arbitration a claim against the other Party to  the extent permitted under that Party’s law. 
Article 11.17 
 
Definitions
 
  For the purposes of this Chapter:  
1. enterprise  means an enterprise as defined in Article 1.2.7 (General Definitions), and a branch 
of an enterprise; 
2. enterprise of a Party  means an enterprise constituted or organized under the law of a Party, 
and a branch located in the territory of a Pa rty and carrying out business activities there;  
3. freely usable currency  means a currency determined by the International Monetary Fund 
under its Articles of Agreement  to be a currency that is, in fact, widely used to make payments for 
international transactions and is widely tr aded in the principal exchange markets; 
4. investment  means every asset that an investor owns or  controls, directly or indirectly, that 
has the characteristics of an investment, including  such characteristics as the commitment of capital or  WT/REG184/1 
 Page 91 
 
 
other resources, the expectation of gain or profit, or the assumption of risk. Forms that an investment 
may take include: 
(a) an enterprise; 
(b) shares, stock, and other forms of equ ity participation in an enterprise; 
(c) bonds, debentures, other debt instruments, and loans;11-6 
(d) futures, options, and other derivatives; 
(e) turnkey, construction, management, pr oduction, concession, revenue-sharing, and 
other similar contracts; 
(f) intellectual property rights; 
(g) licenses, authorisations, permits, and sim ilar rights conferred pursuant to the 
applicable domestic law;11-7 11-8 and  
(h) other tangible or intangible, movable or immovable property, and related property 
rights, such as leases, mortgages, liens, and pledges; 
5. investor of a non-Party  means, with respect to a Party, an  investor that seeks to make, is 
making, or has made an investment in the territory of th at Party, that is not an investor of either Party; 
6. investor of a Party  means a Party, or a national or an enterprise of a Party, that seeks to 
make, is making, or has made an investment in the territory of the other Party; provided, however, that 
a natural person who is a citizen of both Parties or  of a Party and a non-Party shall be deemed to be 
exclusively a citizen of the State of his or her dominant and effective nationality. 
 
ANNEX 11-A 
 
CUSTOMARY INTERNATIONAL LAW 
  The Parties confirm their shared understanding that “customary international law” generally 
and as specifically referenced in Article 11.5 and Annex 11-B results from a general and consistent 
practice of States that they follow from a sense of le gal obligation. With regard to Article 11.5, the 
customary international law minimum standard of treatment of aliens refers to all customary international law principles that protect the economic rights and interests of aliens.   
                                                     
 
11-6 Some forms of debt, such as bonds, debentures, and long-term notes, are more likely to have the 
characteristics of an investment, while other forms of debt , such as claims to paymen t that are immediately due 
and result from the sale of goods or services, are less likely to have such characteristics.  
11-7 Whether a particular type of license, authorisation, permit, or similar instrument (including a 
concession, to the extent that it has the nature of such an instrument) has the characteristics of an investment 
depends on such factors as the nature and extent of the rights that the holder has under the applicable domestic law. Among the licenses, authorisations, permits, and similar instruments that do not have the characteristics of 
an investment are those that do not create any rights protected under domestic law.  For greater certainty, the 
foregoing is without prejudice to whether any asset associ ated with the license, authorisation, permit, or similar 
instrument has the character istics of an investment. 
11-8 The term investment  does not include an order or judgment entered in a judicial or administrative 
action. WT/REG184/1 
Page 92  
 
ANNEX 11-B 
 
EXPROPRIATION 
 1. The Parties confirm their shared understanding that Article 11.7.1 is intended to reflect 
customary international law concerning the obliga tion of States with respect to expropriation. 
2. An action or a series of actions by a Pa rty cannot constitute an expropriation unless it 
interferes with a tangible or intangible property right or property interest in an investment. 
3. Article 11.7.1 addresses two situations. The first is direct expropriation, where an investment 
is nationalized or otherwise directly expropriated through formal transfer of title or outright seizure. 
4. The second situation addressed by Ar ticle 11.7.1 is indirect exprop riation, where an action or 
series of actions by a Party has an effect equivalent  to direct expropriation without formal transfer of 
title or outright seizure. 
(a) The determination of whether an action or series of actions by a Party, in a specific 
fact situation, constitutes an indirect expropriation, requires a case-by-case, fact-
based inquiry that considers, among other factors: 
(i) the economic impact of the government action, although the fact that an 
action or series of actions by a Party has an adverse effect on the economic value of an investment, standing alone,  does not establish that an indirect 
expropriation has occurred; 
(ii) the extent to which the government acti on interferes with distinct, reasonable 
investment-backed expectations; and 
(iii) the character of the government action. 
(b) Except in rare circumstances, nondiscriminator y regulatory actions by a Party that are 
designed and applied to achieve legitimat e public welfare objectives, such as the 
protection of public health, safety, and th e environment, do not constitute indirect 
expropriations. 
 
CHAPTER TWELVE: TELECOMMUNICATIONS 
 
Article 12.1 
 
Scope And Coverage
 
 
1. This Chapter applies to measures affect ing trade in telecommunications services. 
2. Except to ensure that enterprises operating br oadcast stations and cable systems have 
continued access to and use of public telecommunica tions services, this Chapter does not apply to 
measures that a Party adopts or maintains relating to broadcast or cable distribution of radio or 
television programming. 
3. Nothing in this Chapter shall be construed as:  WT/REG184/1 
 Page 93 
 
 
(a) requiring a Party to compel any enterprise to establish, construct, acquire, lease, 
operate, or provide telecommuni cations networks or services where such networks or 
services are not offered to the public generally; or  
(b) requiring a Party to compel any enterprise exclusively engaged in the broadcast or 
cable distribution of radio or television programming to make available its broadcast 
or cable facilities as a public telecommunications network.  
Section A: Access To And Use Of Public Telecommunications Services  
 
Article 12.2 
 
Access And Use  
 1. Each Party shall ensure that enterprises of the other Party have access to and use of any public 
telecommunications service, including leased circuits, offered in its territory or across its borders, on 
terms and conditions that are reasonable and n on-discriminatory (incl uding with respect to 
timeliness), such as those set out in paragraphs 2 through 5. 
2. Each Party shall ensure that su ch enterprises are permitted to: 
(a) purchase or lease, and attach terminal or ot her equipment that interfaces with a public 
telecommunications network; 
(b) provide services to individual or multiple end-users over leased or owned circuits; 
(c) connect owned or leased circuits with public telecommunications networks and 
services in the territory, or across the borders, of  that Party, or with circuits leased or 
owned by another enterprise; 
(d) perform switching, signalling, pro cessing, and conversion functions; and 
(e) use operating protocols of their choice. 
3. Each Party shall ensure that enterprises of th e other Party may use public telecommunications 
services for the movement of information in its territory or across its borders and for access to 
information contained in databases or otherwise stor ed in machine-readable form in the territory of 
either Party or any WTO Member. 
4. Notwithstanding paragraph 3, a Party may take such measures as are necessary to ensure the 
security and confidentiality of messages subject to th e requirement that such measures are not applied 
in a manner that would constitute a means of arbitr ary or unjustifiable discrimination or a disguised 
restriction on trade in services. 
5. Each Party shall ensure that no condition is imposed on access to and use of public 
telecommunications networks or services, other than as necessary to: 
(a) safeguard the public service responsibilities of suppliers of public 
telecommunications networks or services, in  particular their ability to make their 
networks or services available to the public generally; or 
(b) protect the technical integrity of public  telecommunications networks or services. WT/REG184/1 
Page 94  
 
Section B: Suppliers Of Public Telecommunications Services
12-1 
 
Article 12.3 
 
Interconnection  
 
1. Each Party shall ensure suppliers of public telecommunications services in its territory 
provide, directly or indirectly, interconnection with the suppliers of public telecommunications services of the other Party. 
2. In carrying out paragraph 1, each Party shall ensure that suppliers of public 
telecommunications services in its territory take r easonable steps to protect the confidentiality of 
commercially sensitive information of, or rela ting to, suppliers and end-users of public 
telecommunications services and only use such in formation for the purpos e of providing those 
services. 
Article 12.4 
 
Number Portability
 
  Each Party shall ensure that suppliers of pu blic telecommunications services in its territory 
provide number portability for fixe d telephony and any other service designated by that Party to the 
extent technically feasible, and on terms and cond itions that are reasonable and non-discriminatory 
(including with respect to timeliness). 
 
Article 12.5 
 
Dialing Parity
 
 
 Each Party shall ensure that suppliers of pu blic telecommunications services in its territory 
provide dialing parity to suppliers of public teleco mmunications services of the other Party, and afford 
suppliers of public telecommunications services of  the other Party non-discriminatory access to 
telephone numbers and related services.  
Article 12.6 
 
Submarine Cable Systems
 
  Each Party shall ensure reasonable and non-di scriminatory treatment for access to submarine 
cable systems (including landing facilities) in its terri tory, where a supplier is authorized to operate a 
submarine cable system as a public telecommunications service.  
                                                     
 
12-1 For the purposes of this Chapter, Articles 12.4 and 12.5 do not apply to suppliers of commercial 
mobile services. In addition, a state regulatory authority may exempt a rural local exchange carrier, as defined in 
section 251(f)(2) of the United States Communications Act of 1934, as amended by the Telecommunications 
Act of 1996, from the obligations contained in Articles 12.4 and 12.5.  WT/REG184/1 
 Page 95 
 
 
Section C : Conduct Of Major Suppliers Of  Public Telecommunications Services12-2 12-3 
 
Article 12.7 
 
Treatment By Major Suppliers  
 
 Each Party shall ensure that major suppliers  in its territory accord suppliers of public 
telecommunications services of the other Party treat ment no less favourable than such major suppliers 
accord in like circumstances to thei r subsidiaries, their affiliates, or non-affiliated service suppliers, 
regarding: 
 
(a) the availability, provisioning, rates, or quality of like public telecommunications 
services; and 
(b) the availability of technical inte rfaces necessary for interconnection. 
Article 12.8 
 
Competitive Safeguards  
  Each Party shall maintain appropriate measur es for the purpose of preventing suppliers who, 
alone or together, are a major supplier in its terr itory from engaging in or continuing anticompetitive 
practices, including in particular: 
 
(a) engaging in anti-competitive cross-subsidization; 
(b) using information obtained from competit ors with anti-competitive results; and  
(c) not making available, on a timely basis, to suppliers of public telecommunications 
services, technical information about essential facilities and commercially relevant 
information that are necessary for them to provide services. 
Article 12.9 
 
Resale
 
 1. Each Party shall ensure that major suppliers in its territory: 
(a) offer for resale, at reasonable rates,
12-4 to suppliers of public telecommunications 
services of the other Party, public telecommunications services that such major supplier provides at retail to end user s that are not suppliers of public 
telecommunications services; and 
                                                     
 
12-2 For greater clarity, the obligations imposed under this Section only apply with respect to those 
public telecommunications services that result in a supplier of public telecommunications services being a major 
supplier. 
12-3 For the purposes of this Chapter, Section C do es not apply to suppliers of commercial mobile 
services. In addition, with respect to the United States , Section C does not apply to rural telephone companies, 
as defined in section 3(37) of the U.S. Communications  Act of 1934, as amended by the Telecommunications 
Act of 1996, unless a state regulatory authority orders ot herwise. A state regulatory authority may also exempt a 
rural local exchange carrier, as defi ned in section 251(f)(2) of the U.S. Communications Act of 1934, as 
amended by the Telecommunications Act of 1996, from the obligations contained in Section C. 
12-4 For the purposes of sub-paragraph (a): 1) a Party may determine reasonable rates through any 
methodology it considers appropriate; and 2) wholesale rates, set pursuant to a Party’s law and regulations, shall 
be considered reasonable. WT/REG184/1 
Page 96  
 
(b) do not impose unreasonable or discriminatory conditions or limitations on the resale 
of such services.
12-5 
2. Each Party may determine in accordance w ith its law and regulations which public 
telecommunications services must be offered for resale by major suppliers in accordance with 
paragraph 1, based on the need to promote competiti on or such other factors as the Party considers 
relevant. 
Article 12.10 
 
Unbundling Of Network Elements  
 
 Each Party shall provide its telecommunications regulatory body with the authority to require 
that major suppliers in its territory provide supp liers of public telecommunications services of the 
other Party access to network elements for the pr ovision of public telecommunications services on an 
unbundled basis, and on terms and conditions, and at cost-oriented rates that are reasonable, non-
discriminatory, and transparent. 
 
Article 12.11 
 
Interconnection  
 
General Terms and Conditions 
 
1. Each Party shall ensure that major suppliers in  its territory provide interconnection for the 
facilities and equipment of supplie rs of public telecommunications services of the other Party: 
(a) at any technically feasible point in the major supplier’s network; 
(b) under non-discriminatory terms, conditions  (including technical standards and 
specifications), and rates; 
(c) of a quality no less favourable than that pr ovided by such major suppliers for their 
own like services, for like services of non-affiliated service suppliers, or for their subsidiaries or other affiliates; 
(d) in a timely fashion, on terms, cond itions (including technical standards and 
specifications), and cost-oriented rates, that are transparent, reasonable, having regard 
to economic feasibility, and sufficiently unbundled so that suppliers seeking 
interconnection need not pay for network components or facilities that they do not 
require for the service to be provided; and 
(e) on request, at points in addition to the ne twork termination points offered to the 
majority of users, subject to charges that reflect the cost of construction of necessary 
additional facilities. 
 
                                                     
 
12-5 Where provided in its law or regulations, a Party may prohibit a reseller that obtains, at wholesale 
rates, a public telecommunications service available at  retail to only a limited category of subscribers from 
offering the service to a diffe rent category of subscribers.  WT/REG184/1 
 Page 97 
 
 
Options for Interconnecting with Major Suppliers 
 
2. Each Party shall ensure that suppliers of public telecommunications services of the other 
Party may interconnect their facilities and equipment with those of major suppliers in its territory 
pursuant to at least one of the following options: 
(a) a reference interconnection offer or anothe r standard interconnection offer containing 
the rates, terms, and conditions that the majo r supplier offers generally to suppliers of 
public telecommunications services; 
(b) the terms and conditions of an ex isting interconnection agreement; 
(c) through negotiation of a new interconnection agreement; or 
(d) arbitration. 
Public Availability of Interconnection Offers 
 
3. Each Party shall ensure that major suppliers in its territory make public ly available reference 
interconnection offers or other standard interconn ection offers containing the rates, terms, and 
conditions that the major suppliers offer generally to suppliers of public telecommunications services. 
Public Availability of Procedures for Interconnection Negotiations  
4. Each Party shall ensure that applicable pro cedures for interconnection negotiations with major 
suppliers in its territory are made publicly available. 
Public Availability of Terms and Conditions  for Interconnection with Major Suppliers 
 5. Each Party shall ensure that the rates, term s, and conditions for interconnection with major 
suppliers: 
(a) contained in reference interconnection offers  or other standard interconnection offers 
approved by a telecommunications regulatory body; or 
(b) determined by a telecommunications regulatory body through arbitration  
are made publicly available.  
Article 12.12 
 
Provisioning And Pricing Of Leased Circuit Services
 
 1. Each Party shall ensure that major suppliers in its territory provide suppliers of public 
telecommunications services of the other Party leased circuit services that are public 
telecommunications services on terms and conditions , and at rates, that are reasonable, non-
discriminatory (including with respect to timeliness), and transparent. 
2. In carrying out paragraph 1, each  Party shall provide its tel ecommunications regulatory body 
the authority to require major supp liers in its territory to offer such leased circuit services that are 
public telecommunications services to public telecomm unications services suppliers of the other Party 
at capacity-based, cost-oriented prices. WT/REG184/1 
Page 98  
 
Article 12.13 
 
Co-Location
 
 1. Subject to paragraphs 2 and 3, each Party shall ensure that major suppliers in its territory 
provide to suppliers of public telecommunications services of the other Party physical collocation of 
equipment necessary for interconnection or access  to unbundled network elements on terms and 
conditions, and at cost-oriented rates, that are reaso nable, non-discriminatory (including with respect 
to timeliness), and transparent. 
2. Where physical co-location is not practical  for technical reasons or because of space 
limitations, each Party shall ensure that major s uppliers facilitate alternative solutions, which may 
include: 
(a) conditioning additional equipmen t space or providing virtual co-location, on terms 
and conditions, and at cost-oriented rates,  that are reasonable, non-discriminatory 
(including with respect to timeliness), and transparent; 
(b) permitting facilities-based suppliers to locate equipment in a nearby building and to 
connect such equipment to the major supplier’s network; 
(c) optimising the use of existing space; or 
(d) finding adjacent space. 
3. Each Party may determine, in accordance with its law and regulations, which premises in its 
territory are subject to paragraphs 1 and 2. 
Article 12.14 
 
Access To Poles, Ducts, Conduits, And Rights Of Way
 
 1. Each Party shall ensure that major suppliers in its territory provide access to poles, ducts, 
conduits, and rights of way owned or controlled by  such major suppliers to suppliers of public 
telecommunications services of the other Party on terms and conditions, and at cost-oriented
12-6 rates, 
that are reasonable, non-discriminatory (including with respect to timeliness), and transparent. 
2. Nothing in this Chapter shall prevent a Party from determining, under its law and regulations, 
which particular structures owned or controlled by major suppliers in its territory are required to be 
made available in accordance with paragraph 1, provided that this determination is based on a 
conclusion that such structures cannot feasibly be ec onomically or technically substituted in order to 
provide a competing service.  
                                                      
12-6 In the United States, the obliga tion to provide cost-orientated rates does not apply to those states 
that regulate such rates as a matter of state law.  WT/REG184/1 
 Page 99 
 
 
Section D : Other Measures  
 
Article 12.15 
 
Flexibility In The Choice Of Technology  
 
 Neither Party may prevent suppliers of public  telecommunications services or suppliers of 
value added services from choosing the technologies they wish to use to supply their services,  
including packet-based services and commercial mob ile wireless services, subject to requirements 
necessary to satisfy legitimate public policy interests. 
 
Article 12.16 
 
Conditions For The Supply Of Value-Added Services  
 
1. Neither Party may require an enterprise in its territory that supplies value-added services over 
facilities that it does not own to: 
(a) supply such services to the public generally; 
(b) cost-justify its rates for such services; 
(c) file a tariff for such services; 
(d) interconnect its networks with any partic ular customer for the supply of such 
services; or 
(e) conform with any particular standard or technical regulation for interconnection other 
than for interconnection to a public telecommunications network,  
except to remedy a practice that the Party has found in a particular case to be anti-competitive under 
its law or regulations or to otherwise promote comp etition or safeguard the interests of consumers. 
2. For greater clarity, nothing in this Article shall exempt a Party from complying with the 
obligations in Articles 12.2 through 14. 
Article 12.17 
 
Independent Regulatory Bodies And Divestment  
 
1. Each Party shall ensure that any telecommuni cations regulatory body that it establishes or 
maintains is independent and separate from, and not accountable to, any supplier of public 
telecommunications service. 
2. Each Party shall ensure that the decisions  and procedures of its telecommunications 
regulatory body are impartial with respect to all in terested persons. To this end, each Party shall 
ensure that its regulatory body does not hold a financial interest in any supplier of public 
telecommunications services, and that any financial in terest that the Party holds in a supplier of a 
public telecommunications services does not infl uence the decisions and procedures of its 
telecommunications regulatory body. 
3. Where a Party has an ownership interest in a supplier of a public telecommunications service 
and it intends to reduce or eliminate that interest , it shall notify the other Party as soon as feasible. WT/REG184/1 
Page 100  
 
Article 12.18 
 
Universal Service
 
  Each Party shall administer any universal servi ce obligation that it maintains in a transparent, 
non-discriminatory, and competitively neutral manner and shall ensure that its universal service 
obligation is not more burdensome than necessary for the kind of universal service that it has defined. 
 
Article 12.19 
 
Regulatory Procedures
 
 1. Each Party shall ensure that rules, incl uding the basis for such rulemaking, of its 
telecommunications regulatory body are promptly published or otherwise made available to all 
interested persons. 
2. When a Party requires a supplier of public te lecommunications services to have a license, the 
Party shall make publicly available: 
(a) all the licensing criteria and procedures it a pplies, including any standard terms and 
conditions of the license; 
(b) the time it normally requires to reach a d ecision concerning an application for a 
license; and 
(c) the terms and conditions of all licenses it has issued. 
3. Each Party shall ensure that, on request, an app licant receives the reasons for the denial of a 
license. 
4. Each Party shall ensure that tariffs filed with its telecommunications regulatory body are 
promptly published or otherwise made av ailable to all interested parties.  
Article 12.20 
 
Allocation And Use Of Scarce Telecommunications Resources
 
 1. Each Party shall administer its procedures for the allocation and use of scarce 
telecommunications resources, including frequencies, numbers, and rights of way, in an objective, 
timely, transparent, and non-discriminatory manner.
12-7 
2. Each Party shall make publicly available the current state of allocated frequency bands but 
shall not be required to provide detailed identification of frequencies assigned for specific government 
uses. 
3. For greater clarity, measures regarding the allocation and assignment of spectrum and 
regarding frequency management are not measures that are per se  inconsistent with Article 10.4 
(Market Access), which is applied to Chapter Elev en (Investment) through Article 10.1.3 (Scope and 
Coverage). Accordingly, each Party retains the ri ght to establish and apply its spectrum and frequency 
management policies, which may limit the numbe r of suppliers of public telecommunications 
                                                      
12-7 For greater clarity, telecommunica tions resources do not include sp ectrum allocated and used for 
the broadcast of radio and television programming.  WT/REG184/1 
 Page 101 
 
 
services, provided that it does so in a manner that is consistent with this Agreement. Each Party also 
retains the right to allocate frequency bands ta king into account current and future needs. 
4. When making a spectrum allocation for non-g overnment telecommunications services, each 
Party shall endeavour to rely on an open and tr ansparent public comment process that considers the 
overall public interest. Each Party shall endeavour to  rely generally on market based approaches in 
assigning spectrum for terrestrial non-government telecommunications services. 
Article 12.21 
 
Enforcement  
 
1. Each Party shall provide its relevant regulatory body with the authority to enforce compliance 
with the Party’s measures relating to the obligations  set out in Articles 12.2 through 12.7 and Articles 
12.9 through 12.14.12-8 
2. Such authority shall include the ability to im pose, or seek from administrative or judicial 
bodies, effective sanctions, which may include financia l penalties, injunctive relief (on an interim or 
final basis), or the modification, suspension, and revocation of licenses. 
Article 12.22 
 
Resolution Of Telecommunications Disputes And Appeal Processes  
  Further to Articles 20.4 (Administrative Agen cy Processes) and 20.5 (Review and Appeal), 
each Party shall ensure that: 
 
(a) enterprises of the other Party may seek timely review by a telecommunications 
regulatory body or other relevant body to resolve disputes regarding the Party’s measures relating to a matter set out in Articles 12.2 through 12.7 and Articles 12.9 
through 12.14; 
(b) suppliers of public telecommunications of  the other Party that have requested 
interconnection with a major supplier in the Party’s territory will have recourse to a 
telecommunications regulatory body:
12-9 
(i) at any time; or 
(ii) after a reasonable and publicly specified period, 
to review disputes regarding appropria te terms, conditions, and rates for 
interconnection; 
(c) any enterprise that is aggrieved or whose interests are adversely affected by a 
determination or decision of the Party’s telecommunications regulatory body may obtain judicial review of such determination or decision by an impartial and 
independent judicial authority. An applicati on for judicial review shall not constitute 
                                                     
 
12-8 For the purpose of Australia’s obligations under this Chapter, notwithsta nding this paragraph, a 
supplier of public telecommunications services may be required to apply to a judicial body for the enforcement of a determination by a regulatory body in relation to the resolution of a dispute under a domestic measure 
relating to the obligations in Article 12.11. 
12-9 In the United States, this body may be a state regulatory authority. WT/REG184/1 
Page 102  
 
grounds for non-compliance with such a de termination or decision unless stayed by 
the relevant judicial body. 
Article 12.23 
 
Forbearance
12-10 
 
1. The Parties recognize the importance of relying on market forces to achieve wide choices in 
the supply of telecommunications services. To this end, each Party may forebear from applying a regulation or other measure, to the extent provided for in the Party’s law, to a service that the Party 
classifies as a public telecommunications service if its telecommunications regulatory body 
determines that: 
(a) enforcement of such regulation is not necessary to prevent unreasonable or 
discriminatory practices; 
(b) enforcement of such regulation is not neces sary for the protection of consumers; and 
(c) forbearance is consistent with the public interest, including promoting and enhancing 
competition among suppliers of public telecommunications services.  
2. Each Party shall provide interested persons of the other Party adequate public notice and 
opportunity to comment before the Party’s telecommunication regulatory body makes any decision regarding forbearance. 
3. Each Party shall ensure that any enterprise aggr ieved by a decision of the Party’s regulatory 
body regarding forbearance may obtain judicial review of such decision by an independent and 
impartial judicial authority. 
Article 12.24 
 
Relationship To Other Chapters
 
 
 In the event of any inconsistency between this Chapter and another Chapter, this Chapter shall 
prevail to the extent of the inconsistency.  
Article 12.25 
 
Definitions
 
 
 For the purposes of this Chapter:  1. commercial mobile services  means public telecommunications services supplied through 
mobile wireless means; 
2. cost-oriented  means based on cost, and may include a reasonable profit, and may involve 
different cost methodologies for different facilities or services; 
                                                     
 
12-10 For the purposes of this Agr eement, the extent to which the United States telecommunications 
regulatory body may forbear is governed by section 10 of the U.S. Communications Act of 1934, as amended by 
the Telecommunications Act of 1996.  WT/REG184/1 
 Page 103 
 
 
3. dialing parity  means the ability of an end-user to use an equal number of digits to access a 
like public telecommunications service, regardless of the public telecommunications service supplier 
chosen by such end-user and in a way that involves no unreasonable dialing delays; 
4. end-user  means a final consumer of or subscriber to a public telecommunications service, 
including a service supplier other than a supplier of public telecommunications services; 
5. essential facilities  means facilities of a public telecommunications network or service that: 
(a) are exclusively or predominantly provided by  a single or limited number of suppliers, 
and 
(b) cannot feasibly be economically or techni cally substituted in order to provide a 
service; 
6. interconnection  means linking with suppliers providing public telecommunications services 
in order to allow the users of one supplier to comm unicate with the users of another supplier and to 
access services provided by another supplier; 
7. leased circuit  means telecommunications facilities be tween two or more designated points 
that are set aside for the dedicated use of, or ava ilability to, a particular customer or other users; 
8. major supplier  means a supplier of a public teleco mmunications service that has the ability 
to materially affect the terms of participation (h aving regard to price and supply) in the relevant 
market for public telecommunications services as a result of control over essential facilities or use of its position in the market; 
9. network element  means a facility or equipment used in supplying a public 
telecommunications service, including features, func tions, and capabilities provided by means of such 
a facility or equipment; 
10. non-discriminatory  means treatment no less favourable than  that accorded to any other user 
of like public telecommunications services in like circumstances; 
11. number portability  means the ability of end-users of public telecommunications services to 
retain, at the same location, existing telephone numbers when sw itching between suppliers of like 
public telecommunications services; 
12. physical co-location  means physical access to space in order to install, maintain, or repair 
equipment, at premises owned or controlled and used by a major supplier to supply public telecommunications services; 
13. public telecommunications service  means any telecommunications service that a Party 
requires, explicitly or in effect, to be offered to the public generally. Such services may include, inter 
alia, telephone and data transmission typically invo lving customer-supplied information between two 
or more points without any end-to-e nd change in the form or content of the customer’s information;
12-
11 
14. telecommunications  means the transmission and reception of signals by any electromagnetic 
means; 
                                                      
12-11 Because the United States does not classify se rvices described in 47 USC § 153(20) as public 
telecommunications services, these services are not co nsidered public telecommunications services for the 
purposes of this Agreement. This does not prejudice either Party’s position in the WTO on the scope and 
definition of these services. WT/REG184/1 
Page 104  
 
15. telecommunications regulatory body  means a central level body responsible for the 
regulation of telecommunications; 
16. user means an end-user or a supplier of public telecommunications services; and  
17. value-added services  means services that add value to telecommunications services through 
enhanced functionality. More specifically, with r espect to the obligations of the United States under 
this Chapter, these are services as defined in 47 USC § 153(20), and with respect to the obligations of 
Australia under this Chapter, value-added ser vices are telecommunications services for which 
suppliers “add value” to customer in formation by enhancing its form or  content or by providing for its 
storage and retrieval.  
 
CHAPTER THIRTEEN: FINANCIAL SERVICES 
 
Article 13.1 
 
Scope And Coverage
 
 
1. This Chapter applies to measures adopted or maintained by a Party relating to: 
(a) financial institutions of the other Party; 
(b) investors of the other Party, and investments of such investors, in financial 
institutions in the Party’s territory; and 
(c) cross-border trade in financial services. 
2. Chapters Ten (Cross-Border Trade in Services)  and Eleven (Investment) apply to measures 
described in paragraph 1 only to the extent that such Chapters or Articles of such Chapters are 
incorporated into this Chapter. 
(a) Articles 10.11 (Denial of Benefits), 11 .7 (Expropriation and Compensation), 11.8 
(Transfers), 11.11 (Investment and the Envi ronment), 11.12 (Denial of Benefits), and 
11.14 (Special Formalities and Information Requirements) are hereby incorporated 
into and made a part of this Chapter. 
(b) Article 10.10 (Transfers and Pa yments) is incorporated into and made a part of this 
Chapter to the extent that cross-border trade in financial services is subject to 
obligations pursuant to Article 13.5. 
3. This Chapter does not apply to measures adopt ed or maintained by a Party relating to:  
(a) activities or services forming part of a public retirement plan or statutory system of 
social security; or 
(b) activities or services conducted for the account  or with the guarantee or using the 
financial resources of the Party, including its public entities,  
except that if a Party allows any of the activities or services referred to in sub-paragraphs (a) or (b) to 
be conducted by its financial institutions in compe tition with a public entity or a financial institution, 
this Chapter shall apply to measures of that Party relating to such activities or services.  WT/REG184/1 
 Page 105 
 
 
Article 13.2 
 
National Treatment  
 1. Each Party shall accord to investors of the othe r Party treatment no less favourable than that it 
accords to its own investors, in like circumstances,  with respect to the establishment, acquisition, 
expansion, management, conduct, operation, and sale or other disposition of financial institutions and 
investments in financial institutions in its territory. 
2. Each Party shall accord to financial institutions  of the other Party and to investments of 
investors of the other Party in financial institutions treatment no less favourable than that it accords to 
its own financial institutions, and to  investments of its own investors in financial institutions, in like 
circumstances, with respect to the establishment, acquisition, expansion, management, conduct, 
operation, and sale or other disposition of financial institutions and investments. 
Article 13.3 
 
Most-Favoured-Nation Treatment
 
  Each Party shall accord to investors of the other Party, financial instituti ons of the other Party, 
investments of investors in financial institutions, an d cross-border financial service suppliers of  the 
other Party treatment no less favourable than that it accords to the investors, financial institutions, 
investments of investors in financial institutions, and cross-border financial service suppliers of a non-
Party, in like circumstances. 
 
Article 13.4 
 
Market Access For Financial Institutions
 
 
 A Party shall not adopt or maintain, with respect  to investors of the other Party, either on the 
basis of a regional subdivision or on the basis of its entire territory, measures that:   
(a) impose limitations on 
(i) the number of financial institutions, whet her in the form of numerical quotas, 
monopolies, exclusive service suppliers, or the requirement of an economic 
needs test; 
(ii) the total value of financial service tr ansactions or assets in the form of 
numerical quotas or the requirement of an economic needs test;  
(iii) the total number of financial service operations or on the total quantity of 
financial services output expressed in terms of designated numerical units in 
the form of quotas or the requirement of an economic needs test;
13-1 or 
(iv) the total number of natural persons that  may be employed in a particular 
financial service sector or that a financ ial institution may employ and who are 
necessary for, and directly related to, the supply of a specific financial service 
in the form of numerical quotas or the requirement of an economic needs test; 
or 
                                                      
13-1 This clause does not cover measures of a Party which limit inputs for the supply of financial 
services. WT/REG184/1 
Page 106  
 
(b) restrict or require specific types of legal entity or joint venture through which a 
financial institution may supply a service. 
Article 13.5 
 
Cross-Border Trade
 
 
1. Each Party shall permit, under terms and conditions that accord national treatment, 
crossborder financial service suppliers of the other Party to supply the services specified in Annex 13-
A. National treatment requires that a Party shall acc ord to cross-border financial service suppliers of 
the other Party treatment no less favourable than th at which it accords to its own financial service 
suppliers, in like circumstances, with resp ect to the supply of the relevant service. 
2. Each Party shall permit persons located in its te rritory, and its nationals wherever located, to 
purchase financial services from cross-border financial service suppliers of the other Party located in 
the territory of the other Party. This obligation does not require a Party to permit such suppliers to do 
business or solicit in its territory. Each Party ma y define “doing business” and “solicitation” for the 
purposes of this obligation, provided that those defi nitions are not inconsistent with paragraph 1. 
3. Without prejudice to other means of prudential regulation of cross-border trade in financial 
services, a Party may require the registration of cro ss-border financial service suppliers of the other 
Party and of financial instruments. 
Article 13.6 
 
New Financial Services  
  Each Party shall permit a financial institution of the other Party to supply any new financial 
service that the Party would permit its own financ ial institutions, in like circumstances, to supply 
without additional legislative action by the first Party. Notwithstanding Article 13.4(b), a Party may 
determine the institutional and juridical form through which the new financial service may be 
supplied and may require authorisation for the supply of the service. Where a Party requires authorisation to supply a new financial service, a d ecision shall be made within a reasonable time and 
the authorisation may only be refused for prudential reasons.
13-2 
 
Article 13.7 
 
Treatment Of Certain Information  
  Nothing in this Chapter requires a Party to fu rnish or allow access to information related to 
the financial affairs and accounts of individual cu stomers of financial institutions or cross-border 
financial service suppliers. 
 
Article 13.8 
 
Senior Management And Boards Of Directors
 
 
1. A Party may not require financial institutions of the other Party to engage individuals of any 
particular nationality as senior mana gerial or other essential personnel. 
                                                      
13-2 The Parties understand that nothing in Article 13.6 prevents a financial institution of a Party from 
applying to the other Party to consider authorising the supply of a financial service that is supplied in neither 
Party’s territory. Such application shall be subject to the law of the Party to which the application is made and, 
for greater certainty, shall not be subject to the obligations of Article 13.6.  WT/REG184/1 
 Page 107 
 
 
2. A Party may not require that more than a minor ity of the board of directors of a financial 
institution of the other Party be composed of nationals  of the Party, persons residing in the territory of 
the Party, or a combination thereof. 
Article 13.9 
 
Non-Conforming Measures  
 1. Articles 13.2 through 13.5 and 13.8 do not apply to: 
(a) any existing non-conforming measure that is maintained by a Party at 
(i) the central level of government, as set out by that Party in Section A of its 
Schedule to Annex III, 
(ii) a regional level of government, as set out by that Party in Section A of its 
Schedule to Annex III, or 
(iii) a local level of government; 
(b) the continuation or prompt renewal of an y non-conforming measure referred to in 
sub-paragraph (a); or 
(c) an amendment to any non-conforming measure referred to in sub-paragraph (a) to the 
extent that the amendment does not decr ease the conformity of the measure, as it 
existed 
(i) immediately before the amendment, with Articles 13.2, 13.3, 13.4, or 13.8; or 
(ii) on the date of entry into force of the Agreement, with Article 13.5. 
2. Articles 13.2 through 13.5 and 13.8 do not apply to any measure that a Party adopts or 
maintains with respect to sectors, sub-sectors, or activities, as set out in Section B of its Schedule to Annex III. 
3. Annex 13-B sets out certain specific commitments by each Party. 
4. A non-conforming measure set out in a Party’s Sc hedule to Annex I or II as not subject to 
Articles 10.2, 10.3, 11.3, 11.4, or 11.10 shall be treated as a non-conforming measure not subject to 
Articles 13.2, 13.3, 13.5.1, or 13.8.2, as the case ma y be, to the extent that the measure, sector, sub-
sector, or activity set out in the non-conforming measure is covered by this Chapter. 
Article 13.10 
 
Exceptions
 
 
1. Notwithstanding any other provision of this Chapte r or Chapters Eleven (Investment), Twelve 
(Telecommunications), or Sixteen (Electronic Commerce), including specifically Article 12.24 (Relationship to Other Chapters), and Article 10.1 (S cope and Coverage) with respect to the supply of 
financial services in the territory of a Party by an in vestor of the other Party or a covered investment, 
a Party shall not be prevented from adopting or  maintaining measures for prudential reasons, 
including for the protection of investors, depositors , policy holders, or persons to whom a fiduciary 
duty is owed by a financial institution or cross-bor der financial service supplier, or to ensure the 
integrity and stability of the financial system. Wher e such measures do not conform to the provisions WT/REG184/1 
Page 108  
 
of this Agreement referred to in this paragraph,  they shall not be used as a means of avoiding the 
Party’s commitments or obliga tions under such provisions. 
2. Nothing in this Chapter or Chapters Eleven, Tw elve, or Sixteen, including specifically Article 
12.24, and Article 10.1 with respect to the supply of financial services in the territory of a Party by an 
investor of the other Party or a covered investme nt, applies to non-discriminatory measures of general 
application taken by any public entity in pursuit of  monetary and related credit policies or exchange 
rate policies. This paragraph shall not affect a Party’s obligations under Article 11.9 (Performance 
Requirements) with respect to measures covered by  Chapter Eleven, or under Articles 10.10 or 11.8. 
3. Notwithstanding Articles 10.10 and 11.8, as inco rporated into this Chapter, a Party may 
prevent or limit transfers by a financial institution or cross-border financial service supplier to, or for 
the benefit of, an affiliate of or person related to such institution or  supplier, through the equitable, 
non-discriminatory, and good faith application of me asures relating to maintenance of the safety, 
soundness, integrity, or financial responsibility of financial institutions or cross-border financial 
service suppliers. This paragraph does not prejudi ce any other provision of this Agreement that 
permits a Party to restrict transfers. 
4. For greater certainty, nothing in this Chapter shall be construed to prevent the adoption or 
enforcement by a Party of measures necessary to secu re compliance with laws or regulations that are 
not inconsistent with this Chapter, including those relating to the prevention of deceptive and 
fraudulent practices or to deal with the effects of a default on financial services  contracts, subject to 
the requirement that such measures are not applie d in a manner which would constitute a means of 
arbitrary or unjustifiable discrimination between  countries where like conditions prevail, or a 
disguised restriction on investment in financial ins titutions or cross-border trade in financial services. 
Article 13.11 
 
Regulatory Transparency
 
 
1. The Parties recognize that tran sparent regulations and policies governing the activities of 
financial institutions and cross-bor der financial service suppliers ar e important in facilitating their 
ability to gain access to and operate  in each other’s market. Each Party commits to promote regulatory 
transparency in financial services. 
2. Each Party shall ensure that all measures of ge neral application to which this Chapter applies 
are administered in a reasonable, objective, and impartial manner.  
3. In lieu of Article 20.2.2 (Publication), each Party shall, to the extent practicable, 
(a) publish in advance any regulations of gene ral application relating to the subject 
matter of this Chapter that it proposes to adopt and the purpose of the regulation; and 
(b) provide interested persons and the other Party a reasonable opportunity to comment 
on such proposed regulations. 
4. At the time it adopts final regulations, a Part y should, to the extent practicable, address in 
writing substantive comments received from inte rested persons with respect to the proposed 
regulations. 
5. To the extent practicable, each Party should provide notice of the requirements of final 
regulations a reasonable time prior to their effective date.  WT/REG184/1 
 Page 109 
 
 
6. Each Party shall ensure that the rules of gene ral application adopted or maintained by self-
regulatory organisations of the Party are promptly published or otherwise made available in such a 
manner as to enable interested persons  to become acquainted with them. 
7. Each Party shall maintain or establish appropr iate mechanisms for responding to inquiries 
from interested persons regarding measures of ge neral application covered by this Chapter. 
8. Each Party’s regulatory authorities shall make pub licly available their requirements, including 
any documentation required, for completing applicati ons relating to the supply of financial services. 
9. On the request of an applicant, a Party’s regulat ory authority shall inform the applicant of the 
status of its application. If the authority requir es additional information from the applicant, it shall 
notify the applicant without undue delay. 
10. A Party’s regulatory authority shall make an administrative decision on a completed 
application of an investor in a financial institution,  a financial institution, or a cross-border financial 
service supplier of the other Party relating to the supply of a financial service within 120 days, and 
shall promptly notify the applicant of the decision. An application shall not be considered complete 
until all relevant hearings are held and all n ecessary information is received. Where it is not 
practicable for a decision to be made within 120 days, the regulatory authority shall notify the 
applicant without undue delay and shall endeavour to make the decision within a reasonable time 
thereafter. 
11. On the request of an unsuccessful applicant,  a regulatory authority that has denied an 
application shall, to the extent practicable, inform  the applicant of the reasons for denial of the 
application. 
Article 13.12 
 
Self-Regulatory Organisations  
  Where a Party requires a financial institution or a cross-border financial service supplier of 
the other Party to be a member of, participate in, or have access to, a self-regulatory organisation to 
provide a financial service in or into its territory, the Party shall ensure observance of the obligations 
of Articles 13.2 and 13.3 by such self-regulatory organisation.   
Article 13.13 
 
Payment And Clearing Systems
 
  Under terms and conditions that accord national treatment, each Party shall grant financial 
institutions of the other Party access to payment and clearing systems operated by public entities, and 
to official funding and refinancing facilities availabl e in the normal course of ordinary business. This 
paragraph is not intended to confer access to the Party’s lender of last resort facilities. 
 
Article 13.14 
 
Expedited Availability Of Insurance Services
 
 
 The Parties recognise the importance of mainta ining and developing regulatory procedures to 
expedite the offering of insurance services by licensed suppliers.   WT/REG184/1 
Page 110  
 
Article 13.15 
 
Recognition
 
 
1. A Party may recognise prudential measures of a non-Party in the application of measures 
covered by this Chapter. Such recognition may be: 
(a) accorded autonomously; 
(b) achieved through harmonisation or other means; or 
(c) based upon an agreement or arrangement with the non-Party. 
2. A Party according recognition of prudential measures under paragraph 1 shall provide 
adequate opportunity to the other Party to demonstr ate that circumstances exist in which there are or 
would be equivalent regulation,  oversight, implementation of re gulation, and, if appropriate, 
procedures concerning the sharing of information between the Parties.  
3. Where a Party accords recognition of pruden tial measures under paragraph 1(c) and the 
circumstances set out in paragraph 2 exist, the Pa rty shall provide adequate opportunity to the other 
Party to negotiate accession to the agreement or a rrangement, or to negotiate a comparable agreement 
or arrangement. 
Article 13.16 
 
Financial Services Committee  
 
1. The Parties hereby establish a Financial Serv ices Committee. The principal representative of 
each Party shall be an official of the Party’s auth ority responsible for financial services set out in 
Annex 13-C. 
2. The Committee shall: 
(a) supervise the implementation of this Chap ter and its further elaboration; and  
(b) consider issues regarding financial services th at are referred to it by a Party, including 
ways to further integrate financial services sectors between the Parties. 
3. The Committee shall meet annually, or as otherw ise agreed, to assess the functioning of this 
Agreement as it applies to financial services.  The Committee shall inform the Joint Committee 
established under Article 21.1 (Joint Committe e) of the results of each meeting.  
Article 13.17 
 
Consultations  
 1. A Party may request consultations with the other Party regarding any matter arising under this 
Agreement that affects financial services. The other Party shall give sympathetic consideration to the 
request. The Parties shall report the results of their consultations to the Committee. 
2. Consultations under this Article shall include offi cials of the authorities specified in       
Annex 13-C.  WT/REG184/1 
 Page 111 
 
 
Article 13.18 
 
Dispute Settlement  
 1. Section B of Chapter Twenty-One (Dispute Settleme nt) applies as modified by this Article to 
the settlement of disputes arising under this Chapter. 
2. When a Party claims that a dispute arises under this Chapter, Article 21.7 shall apply, except 
that: 
(a) where the Parties so agree, the panel shall be composed entirely of panellists meeting 
the qualifications in paragraph 3; and 
(b) in any other case, 
(i) each Party may select panellists meeting the qualifications set out in 
paragraph 3 or in Article 21.7.3, and 
(ii) if the Party complained against invokes Article 13.10, the chair of the panel 
shall meet the qualifications set out in paragraph 3, unless the Parties agree 
otherwise. 
3. Financial services panellists shall: 
(a) have expertise or experience in financial services law or practice, which may include 
the regulation of financial institutions; 
(b) be chosen strictly on the basis of obj ectivity, reliability, and sound judgment; 
(c) be independent of, and not be affiliated with or take instructions from, either Party; 
and not have a conflict of interest or appearance thereof, as set forth in a code of 
conduct to be established by the Joint Committee; and  
(d) comply with the code of conduct. 
4. Further to Article 21.11 (Non-implementation) , where a panel finds a measure to be 
inconsistent with this Agreement a nd the measure under dispute affects:  
(a) only a sector other than the financial serv ices sector, the complaining Party may not 
suspend benefits in the financial services sector; or 
(b) the financial services sector and any other sector, the complaining Party may suspend 
benefits in the financial services sector that have an effect equivalent to the effect of 
the measure in the Party’s financial services sector. 
Article 13.19 
 
Definitions
 
  For the purposes of this Chapter:  
1. cross-border financial service supplier of a Party  means a person of a Party that is engaged 
in the business of supplying a financial service with in the territory of the Party and that seeks to 
supply or supplies a financial service through the cross-border supply of such services; WT/REG184/1 
Page 112  
 
2. cross-border trade in financial services or cross-border supply of financial services  
means the supply of a financial service: 
(a) from the territory of one Party into the territory of the other Party, 
(b) in the territory of one Party by a person of that Party to a person of the other Party, or 
(c) by a national of one Party in the territory of the other Party,  
but does not include the supply of a financial service in  the territory of a Party by an investment in 
that territory; 
3. financial institution  means any financial intermediary or ot her enterprise that is authorised to 
do business and regulated or supervised as a financia l institution under the law of the Party in whose 
territory it is located; 
4. financial institution of the other Party  means a financial institution, including a branch, 
located in the territory of a Party that is controlled by persons of the other Party;  
5. financial service  means any service of a financial nature. Financial services include all 
insurance and insurance-related services, and a ll banking and other financial services (excluding 
insurance), as well as services incidental or auxilia ry to a service of a financial nature. Financial 
services include the following activities: 
Insurance And Insurance-Related Services 
 
(a) Direct insurance (including co-insurance): 
(i) life, 
(ii) non-life; 
(b) Reinsurance and retrocession; 
(c) Insurance intermediation, such as brokerage and agency; and 
(d) Services auxiliary to insurance, such as consultancy, actuarial, risk assessment, and 
claim settlement services. 
Banking And Other Financial Services (Excluding Insurance) 
 
(e) Acceptance of deposits and other repayable funds from the public; 
(f) Lending of all types, including consumer credit, mortgage credit, factoring, and 
financing of commercial transactions; 
(g) Financial leasing; 
(h) All payment and money transmission services, including credit, charge, and debit 
cards, travellers checks, and bankers drafts; 
(i) Guarantees and commitments;  WT/REG184/1 
 Page 113 
 
 
(j) Trading for own account or for account of customers, whether on an exchange, in an 
over-the-counter market, or otherwise, the following: 
(i) money market instruments (including ch ecks, bills, certificates of deposits); 
(ii) foreign exchange; 
(iii) derivative products including, but no t limited to, futures and options; 
(iv) exchange rate and interest rate instru ments, including products such as swaps, 
forward rate agreements; 
(v) transferable securities; and 
(vi) other negotiable instruments and financial assets, including bullion; 
(k) Participation in issues of all kinds of securities, including underwriting and placement 
as agent (whether publicly or privately) and provision of services related to such 
issues; 
(l) Money broking;  
(m) Asset management, such as cash or portfolio management, all forms of collective 
investment management, pension fund mana gement, custodial, depository, and trust 
services; 
(n) Settlement and clearing services for financia l assets, including securities, derivative 
products, and other negotiable instruments; 
(o) Provision and transfer of financial inform ation, and financial data processing and 
related software by suppliers of other financial services; 
(p) Advisory, intermediation, and other auxilia ry financial services on all the activities 
listed in clauses (e) through (o), including cr edit reference and analysis, investment 
and portfolio research and advice, advi ce on acquisitions and on corporate 
restructuring and strategy; 
6. financial service supplier of a Party  means a person of a Party that is engaged in the 
business of supplying a financial service within the territory of that Party;  
7. investment  means “investment” as defined in Article  11.17.4 (Definitions), except that, with 
respect to “loans” and “debt instrume nts” referred to in that Article: 
(a) a loan to or debt instrument issued by a financial institution is an investment only 
where it is treated as regulatory capital by the Party in whose territory the financial 
institution is located; and 
(b) a loan granted by or debt instrument owne d by a financial institution, other than a 
loan to or debt instrument of a financial in stitution referred to in sub-paragraph (a), is 
not an investment.  
For greater certainty, a loan granted by or debt instrument owned by a cross-border financial service 
supplier, other than a loan to or debt instrument i ssued by a financial institution, is an investment for WT/REG184/1 
Page 114  
 
the purposes of Chapter Eleven, if such loan or debt  instrument meets the criteria for investments set 
out in Article 11.17.4; 
8. investor of a Party  means a Party, or a person of a Party, that seeks to make, is making, or 
has made an investment in the territory of the ot her Party; provided, however, that a natural person 
who is a citizen of both Parties or a Party and a non- Party shall be deemed to be exclusively a citizen 
of the State of his or her dominant and effective nationality;  
9. new financial service  means a financial service not supplied in the Party’s territory that is 
supplied within the territory of the other Party, a nd includes any new form of delivery of a financial 
service or the sale of a financial product that is not sold in the Party’s territory; 
10. person of a Party  means “person of a Party” as defined in Article 1.2 (Establishment of a 
Free Trade Area and General Definitions) and, for gr eater certainty, does not include a branch of an 
enterprise of a non-Party; 
11. public entity  means a central bank or monetary aut hority of a Party, or any financial 
institution owned or controlled by a Party; for greater certainty, a public entity
13-3 shall not be 
considered a designated monopoly or a state en terprise for the purposes of Chapter Fourteen 
(Competition); and  
12. self-regulatory organisation  means any non-governmental bod y, including any securities or 
futures exchange or market, clearing agency, or ot her organisation or association, that exercises its 
own or delegated regulatory or s upervisory authority over financial service suppliers or financial 
institutions; for greater certainty, a self-regulatory or ganisation shall not be considered a designated 
monopoly for the purposes of Chapter Fourteen (Competition). 
 
ANNEX 13-A 
 
CROSS-BORDER TRADE 
 UNITED STATES 
 
Insurance and insurance-related services 
 
1. For the United States, Article 13.5.1 applies to the cross-border supply of or trade in financial 
services as defined in Article 13.19.2(a) with respect to: 
 
(a) insurance of risks relating to: 
(i) maritime shipping and commercial av iation and space launching and freight 
(including satellites), with such insurance to cover any or all of the following: 
the goods being transported, the vehicle transporting the goods, and any 
liability arising therefrom; and  
(ii) goods in international transit;  
                                                     
 
13-3 The Federal Deposit Insurance Corporation of the United States shall be deemed to be within the 
definition of public entity for purposes of Chapter Fourteen (Competition).  WT/REG184/1 
 Page 115 
 
 
(b) reinsurance and retrocession, services auxiliary  to insurance as referred to in Article 
13.19.5(d), and insurance intermediation su ch as brokerage and agency as referred to 
in Article 13.9.5(c). 
2. For the United States, Article 13.5.1 applies to the cross-border supply of or trade in financial 
services as defined in Article 13.19.2(c) with respect to insurance services. 
Banking and other financial services (excluding insurance) 
 
3. For the United States, Article 13.5.1 applies with respect to the provision and transfer of 
financial information and financia l data processing and related soft ware as referred to in Article 
13.19.5(o), and advisory and other auxiliary servi ces, excluding intermediation, relating to banking 
and other financial services as refe rred to in Article 13.19.5(p). 
 
AUSTRALIA 
 
Insurance and insurance-related services 
 
1. For Australia, Article 13.5.1 applies to the cross- border supply of or trade in financial services 
as defined in Article 13.19.2(a) with respect to: 
(a) insurance of risks relating to: 
(i) maritime shipping and commercial av iation and space launching and freight 
(including satellites), with such insurance to cover any or all of the following: 
the goods being transported, the vehicle transporting the goods, and any 
liability arising therefrom; and 
(ii) goods in international transit; 
(b) reinsurance and retrocession, and services aux iliary to insurance as referred to in 
Article 13.1.5(d); and 
(c) insurance intermediation, such as brokerage  and agency as referred to in Article 
13.19.5(c) in relation to the services in sub-paragraphs (a) and (b). 
Banking and other financial services (excluding insurance) 
 
2. For Australia, Article 13.5.1 applies with respect  to the provision and transfer of financial 
information and financial data proc essing and related software as re ferred to in Article 13.19.5(o), and 
advisory and other auxiliary services, excluding intermediation, relating to banking and other 
financial services as referred to in Article 13.19.5(p). 
 
ANNEX 13-B 
 
SPECIFIC COMMITMENTS 
 
Portfolio Management 
 
1. A Party shall allow a financial institution (other  than a trust company), organized outside its 
territory, to provide investment advice and portf olio management services, excluding (1) custodial 
services, (2) trustee services, and (3) execution services that are not related to managing a collective WT/REG184/1 
Page 116  
 
investment scheme, to a collective investment sch eme located in its territory. This commitment is 
subject to Articles 13.1 and 13.5.3. 
2. For the purposes of paragraph 1, collective investment scheme  means: 
(a) in Australia, a managed investment scheme as defined under section 9 of the 
Corporations Act 2001, other than a ma naged investment scheme operated in 
contravention of subsection 601ED(5) of the Corporations Act 2001, or an entity that: 
(i) carries on a business of investment in secu rities, interests in land, or other 
investments; and 
(ii) in the course of carrying on that busin ess, invests funds subscribed, whether 
directly or indirectly, after an offer or invitation to the public (within the 
meaning of section 82) made on terms th at the funds subscribed would be 
invested; and 
(b) in the United States, an investment comp any registered with  the Securities and 
Exchange Commission under the Investment Company Act of 1940.  
Related to Article 13.14 (Expedited Av ailability of Insurance Services) 
 
3. Recognising the principles of federalism under th e U.S. Constitution, the history of state 
regulation of insurance in the United States, and the McCarran-Ferguson Act, the United States 
welcomes the efforts of the National Association of Insurance Commissioners (“NAIC”) relating to 
the availability of insurance servi ces as expressed in the NAIC’s “State ment of Intent: the Future of 
Insurance Regulation”, including the initiatives on speed-to-market intentions and regulatory re-
engineering (under Part II of the Statement of Inte nt). Regarding the speed-t o-market initiative, those 
U.S. states maintaining product filing requirements for particular lines of insurance shall operate their 
review process on an expeditious basis. All U. S. states are implementing mechanisms to allow 
electronic filing; in addition, many U.S. states also allow file-and-use of products. 
4. In Australia, insurance is currently regulated by  authorising and supervising insurers and not 
by approving products. In the event that Australia’s  system of insurance regulation was modified to 
include product approval, such appr oval would be done expeditiously. 
 
ANNEX 13-C 
 
AUTHORITIES RESPONSIBLE FOR FINANCIAL SERVICES 
 
 The authority of each Party responsible for financial services is:  
(a) for Australia, the Department of the Treasury; and 
(b) for the United States, the Department of the Treasury for banking and other financial 
services and the Office of the United States Trade Representative, in coordination 
with the Department of Commerce and ot her agencies, for insurance services.  WT/REG184/1 
 Page 117 
 
 
CHAPTER FOURTEEN: COMPETITION-RELATED MATTERS 
 
Article 14.1 
 
Objectives  
 
 Recognizing that the conduct subject to this Chap ter has the potential to restrict bilateral trade 
and investment, the Parties believe that proscribi ng such conduct, implementing policies that promote 
economic efficiency and consumer welfare, and c ooperating on matters covered by this Chapter will 
help secure the benefits of this Agreement. 
 
Article 14.2 
 
Competition Law And Anticompetitive Business Conduct  
 
1. Each Party shall maintain or adopt measu res to proscribe anticompetitive business conduct 
and take appropriate action with respect thereto, r ecognizing that such measures will  help realise the 
objectives of this Agreement. To this end, the Pa rties shall consult from time to time about the 
effectiveness of measures that a Pa rty has undertaken. Each Party shall ensure that a person subject to 
the imposition of a sanction or remedy for violation of such measures is provided with the opportunity 
to be heard and to present evidence, and to seek re view of such sanction or remedy in a court or 
independent tribunal of that Party. 
2. Each Party shall maintain an authority or au thorities responsible for the enforcement of its 
national competition laws. The enforcement policy of each Party’s central government authorities 
responsible for the enforcement of such laws in cludes treating non-nationals no less favourably than 
nationals in like circumstances, and each Party’s au thorities intend to maintain this policy, in that 
regard. 
3. The Parties recognize the importance of c ooperation and coordina tion between their 
respective authorities to further effective compe tition law enforcement in the free trade area. The 
Parties shall cooperate in relation to the enforc ement of competition laws and policy, including 
through mutual assistance, notification, cons ultation, and exchange of information.  
(a) The Parties recognize their existing mech anisms for cooperation in relation to 
competition law enforcement, specifically: 
(i) The Agreement between the Government of Australia and the Government of 
the United States of America relating to Cooperation on Antitrust Matters of 1982; and 
(ii) The Agreement between the Government of Australia and the Government of 
the United States of America on Mutual  Antitrust Enforcement Assistance of 
1999. 
(b) The Parties shall work to further strengt hen their cooperation in these areas. Such 
cooperation shall include consideration by  a Party’s central government authorities 
responsible for the enforcement of its competition laws, where feasible and appropriate, of a request by the other Party’s central government authorities 
responsible for the enforcement of its competition laws to initiate or expand 
enforcement activities. 
4. To further advance their cooperation, the Par ties shall examine the scope for strengthening 
support for, and minimizing legal impediments to , the effective enforcement of each other’s WT/REG184/1 
Page 118  
 
competition laws and policies. The Parties shall establish a joint working group with the goal of 
seeking to reach a common view, by the first mee ting of the Joint Committee established pursuant to 
Chapter 21 (Institutional Arrangements and Dispute Settle ment), of appropriate steps to enhance their 
respective legal and regulatory regimes in that regard. 
Article 14.3 
 
Designated Monopolies
 
 1. Recognizing that designated monopolies should not operate in a manner that creates obstacles 
to trade and investment, each Pa rty shall ensure that any privately-owned monopoly that it designates 
after the date of entry into force of this Agreem ent and any government monopoly that it designates or 
has designated: 
(a) acts in a manner that is not inconsistent  with the Party’s obligations under this 
Agreement wherever such a monopoly exercises any regulatory, administrative, or other governmental authority that the Party has delegated to it in connection with the 
monopoly good or service, such as the power to grant import or export licenses, 
approve commercial transactions, or impose quotas, fees, or other charges;  
(b) acts solely in accordance with commercial cons iderations in its purchase or sale of the 
monopoly good or service in the relevant market, including with regard to price, quality, availability, marketability, transpor tation, and other term s and conditions of 
purchase or sale, except to comply with an y terms of its designation that are not 
inconsistent with sub- paragraph (c) or (d); 
(c) provides non-discriminatory treatment to c overed investments, to goods of the other 
Party, and to service suppliers of the other Party in its purchase or sale of the monopoly good or service in the relevant market; and  
(d) does not use its monopoly position to engage, e ither directly or indirectly, including 
through its dealings with its parent, subs idiaries, or other enterprises with common 
ownership, in anticompetitive practices in a non-monopolized market in its territory, 
where such practices adversely affect covered investments. 
2. Nothing in this Chapter shall be construed as preventing a Party from designating a 
monopoly. 
3. This Article does not apply to government procurement. 
Article 14.4 
 
State Enterprises And Related Matters
 
 1. The Parties recognize that state enterprises s hould not operate in a manner that creates 
obstacles to trade and investment. In that light, each Party shall ensure that an y state enterprise that it 
establishes or maintains: 
(a) acts in a manner that is not inconsistent  with the Party’s obligations under this 
Agreement wherever such en terprise exercises any regulatory, administrative, or 
other governmental authority that the Party has delegated to it, such as the power to expropriate, grant licenses, approve commerc ial transactions, or impose quotas, fees, 
or other charges; and  WT/REG184/1 
 Page 119 
 
 
(b) accords non-discriminatory treatment in the sale of its goods or services. 
2. The United States shall ensure that anticompetitiv e activities by sub-federal state enterprises 
are not excluded from the reach of its national antitru st laws solely by reason of their status as sub-
federal state enterprises, to the extent that th eir activities are not protected by the State Action 
Doctrine. 
3. Australia shall take reasonable measures, including through its policy of competitive 
neutrality, to ensure that its governments at all le vels do not provide any competitive advantage to any 
government businesses simply because they are govern ment-owned. This paragraph applies to the 
business activities of government businesses and not to their non-business, non-commercial activities. 
Australia shall ensure that its competitive neutrality  complaints offices treat complaints lodged by the 
United States, or persons of the United States, no less favourably than complaints lodged by persons 
or government bodies of Australia. 
Article 14.5 
 
Differences In Pricing  
 
 Articles 14.3 and 14.4 shall not be construed as preventing a monopoly or state enterprise 
from charging different prices in different markets, or within the same market , where such differences 
are based on normal commercial considerations, such as taking account of supply and demand 
conditions.  
Article 14.6 
 
Cross Border Consumer Protection
 
 1. The Parties recognize the importance of coopera tion and coordination on matters related to 
their consumer protection laws in order to enhance consumer welfare in the free trade area. 
Accordingly, the Parties shall cooperate in the enforcement of their consumer protection laws. 
2. The Parties recognize the existing mechanisms  for cooperation in relation to consumer 
protection, including: 
(a) the Agreement between the Federal Trade Commission of the United States of 
America and the Australian Competition and Consumer Commission on the Mutual 
Enforcement Assistance in Consumer Protection Matters of 2000; 
(b) the OECD Guidelines for Protecting Consumers from Fraudulent and Deceptive 
Commercial Practices Across Borders of 2003 ; and 
(c) the International Consumer Protec tion and Enforcement Network (ICPEN). 
3. The Parties shall further strengthen coopera tion and coordination among their respective 
agencies, including the U.S. Federal Trade Commi ssion (FTC) and the Australian Competition and 
Consumer Commission (ACCC) in areas of mutual c oncern, in particular fraudulent and deceptive 
commercial practices against consumers: 
(a) in the development of appropriate procedures for  
(i) cooperating in the prompt detection of  consumer protection law violations 
affecting consumers or markets in both Parties’ territories, WT/REG184/1 
Page 120  
 
(ii) notifying each other of significant inv estigations and proceedings involving 
consumer protection law violations occurri ng or originating in the territory of 
the other Party or significantly affecting consumers or markets in the territory 
of the other Party, 
(iii) exchanging information related to th e administration of their consumer 
protection laws, 
(iv) providing enforcement and investigative assistance to each other to the extent 
compatible with each Party’s laws, in  appropriate consumer protection law 
cases, and 
(v) consulting and coordinating on enfo rcement actions against consumer 
protection law violations that have a significant cross-border dimension;  
(b) in the development of coordinated strategies to combat fraudulent and deceptive 
commercial practices against consumers, both bilaterally and multilaterally; and  
(c) through joint study of addi tional measures to enhance the scope and effectiveness of 
information sharing, investigative assistan ce, and cooperation and coordination in the 
enforcement of the Parties’ respective consumer protection laws, including the use of 
investigative powers and participati on in appropriate court proceedings. 
4. Nothing in this Article shall limit the discre tion of the FTC or ACCC to decide whether to 
take action on particular requests by the other agen cy, or shall preclude either agency from taking 
action with respect to particular cases. 
5. In addition, the Parties shall id entify, in areas of mutual concern and consistent with their 
important interests, obstacles to effective cross- border cooperation in the enforcement of consumer 
protection laws, and shall consider changing their domestic frameworks to overcome such obstacles 
and enhance the ability of the Parties to cooperate, sh are information, and assist in the enforcement of 
each other’s consumer protection laws, including , if appropriate, adopti ng or amending national 
legislation to overcome such obstacles. 
Article 14.7 
 
Recognition And Enforcement Of Monetary Judgments
 
 1. The Parties recognize the importance of civil proceedings by the FTC, U.S. Securities and 
Exchange Commission, U.S. Commodity Futures Trading Commission, Australian Securities and 
Investments Commission, and the ACCC to provide m onetary restitution to consumers, investors, or 
customers who have suffered economic harm as a resu lt of being deceived, defrauded, or misled. The 
Parties further recognize the importance of facilita ting cross-border recognition and enforcement of 
monetary judgments obtained for such purposes.  
2. When an agency listed in paragraph 1 obtains a civil monetary judgment from a judicial 
authority of a Party for the purpose of providing m onetary restitution to consumers, investors, or 
customers who have suffered economic harm as a r esult of being deceived, defrauded, or misled, a 
judicial authority of the other Party generally should not disqualify such a monetary judgment from recognition or enforcement on the ground that it is pe nal or revenue in nature or based on other 
foreign public law, including where such judgment c ontains provisions for recovery of monies or 
other disposition in the event that restitution is im practical or for payment of expenses related to the 
collection or distribution of such a monetary judgment.  WT/REG184/1 
 Page 121 
 
 
3. The judicial authorities of a Party should c onsider the recognition or enforcement of 
provisions for monetary judgments described in pa ragraph 2 separately from other provisions of the 
judgment, to the extent such other provisions are deem ed to be penal or revenue in nature or based on 
other foreign public law for the purposes of recognition or enforcement.  
4. Nothing in this Article is intended to affect wh ether any other category of law or judgment is 
appropriately viewed as penal or revenue in natu re or based on other foreign public law for the 
purposes of the recognition or enforcement of foreign judgments. 
5. Each Party’s agencies listed in paragraph 1 shoul d cooperate with the relevant agencies of the 
other Party, where feasible and appropriate, in facilita ting the identification of consumers,  investors, 
and customers described in paragraph 2 and on other matters relating to payment of monetary 
judgments. 
6. The Parties shall work together to examine the scope for establishing greater bilateral 
recognition of foreign judgments of their respectiv e judicial authorities obtained for the benefit of 
consumers, investors, or customers who have su ffered economic harm as a result of being deceived, 
defrauded, or misled; and shall report on the feasi bility and appropriateness of, and progress toward, 
greater recognition of such foreign judgments at the first meeting of the Joint Committee. 
Article 14.8 
 
Transparency  
 1. The Parties recognize the value of transp arency in their competition policies.  
2. On request of a Party, each Party shall make available to the other Party public information 
concerning: 
(a) the enforcement of its measures pr oscribing anticompetitive business conduct; 
(b) its state enterprises, government businesses, and public or private designated 
monopolies, provided that requests for such  information shall indicate the entities 
involved, specify the particular products a nd markets concerned, and include indicia 
that these entities may be engaging in practices that may hinder trade or investment between the Parties; and 
(c) exemptions and immunities to its measu res proscribing anticompetitive business 
conduct, provided that requests shall specify the particular goods and markets of concern and include indicia that the exemp tions and immunities may hinder trade or 
investment between the Parties. 
Article 14.9 
 
Cooperation
 
 
 The Parties recognize that policies related to ma tters covered by this Chapter can be a force 
for open and competitive markets domestically and internationally. They also recognize that such 
policies can have an effect on investment and on  the extent to which enterprises of a Party can 
compete with, sell goods and services to, and purchase good and services from enterprises of the other Party. Accordingly, the Parties shall cooperate, in cluding in the manner provided for in Articles 14.2.3 
and 14.6, to promote policies related to matters c overed by this Chapter that foster free trade and 
investment and competitive markets. 
 WT/REG184/1 
Page 122  
 
Article 14.10 
 
Consultations
 
 1. To foster understanding between the Parties, or  to address specific matters that arise under 
this Chapter, each Party shall, on request of th e other Party, enter into consultations regarding 
representations made by the other Party. In its requ est, the Party shall indicate, if relevant, how the 
matter affects trade or investment between the Parties. 
2. The Party to which a request for consultati ons has been addressed shall accord full and 
sympathetic consideration to the concerns ra ised by the Party having made the request. 
Article 14.11 
 
Dispute Settlement
 
  Neither Party may have recourse to dispute settlement under this Agreement for any matter 
arising under Articles 14.2, 14.4.2, 14.4.3, 14.6, 14.7, 14.9, or 14.10.2. 
 
Article 14.12 
 
Definitions
 
 
 For the purposes of this Chapter: 
 1. consumer protection laws  means: 
(a) in the case of the United States, laws and regulations prohibiting “unfair or deceptive 
acts or practices” within the meaning of Section 5 of the Federal Trade Commission 
Act; and 
(b) in the case of Australia, Parts IVA, V, and VC of the Trade Practices Act 1974 ; as 
well as any amendments thereto, and such other laws or regulations as the Parties may agree in writing; 
2. designate  means, whether formally or in effect , to establish, designate, or authorize a 
monopoly or to expand the scope of a monopoly to cover an additional good or service;  
3. government businesses  means Australian government businesses within the meaning of 
Australia’s Competition Principles Agreement of 1995;  
4. government monopoly  means a monopoly that is owned, or controlled through ownership 
interests, by the central government of a Party or by another such monopoly;  
5. in accordance with commercial considerations  means consistent with normal business 
practices of privately-held enterprises in the relevant business or industry; 
6. market  means the geographical and commercial market for a good or service; 
7. monopoly  means an entity, including a consortium or government agency, that in any 
relevant market in the territory of a Party is d esignated as the sole provider or purchaser of a good or 
service, but does not include an en tity that has been granted an exclusive intellectual property right 
solely by reason of such grant;  WT/REG184/1 
 Page 123 
 
 
8. non-discriminatory treatment  means the better of national treatment and most-favoured- 
nation treatment, as set out in the relevant provisi ons of this Agreement, including the terms and 
conditions set out in the rele vant Annexes thereto; and 
9. state enterprise  means an enterprise owned, or cont rolled through ownership interests, by 
any level of government of a Party. 
 
CHAPTER FIFTEEN: GOVERNMENT PROCUREMENT 
 
Article 15.1 
 
Scope And Coverage  
 
Application Of Chapter 
 
1. This Chapter applies to any measur e regarding covered procurement. 
2. For the purposes of this Chapter, covered procurement  means a procurement of goods, 
services, or both: 
(a) by any contractual means, including purchase, rental, or lease, with or without an 
option to buy, build-operate-transfer c ontracts, and public works concessions 
contracts; 
(b) for which the value, as estimated in accord ance with paragraphs 6, 7, or 8, as 
appropriate, equals or exceeds the releva nt threshold specified in Annex 15-A; 
(c) that is conducted by a procuring entity; and 
(d) is not excluded from coverage by this Agreement. 
3. This Chapter does not apply to: 
(a) non-contractual agreements or any form of assistance that a Party or a government 
enterprise provides, including grants, loans,  equity infusions, fiscal incentives, 
subsidies, guarantees, cooperative agr eements, and sponsorship arrangements; 
(b) procurement of goods and services by a Party from its own entities and provision of 
goods or services by or between a procuring entity of a Party and a regional or local government of that Party; 
(c) purchases funded by international grants, loans, or other assistance, where the 
provision of such assistance is subject to conditions inconsistent with this Chapter; 
(d) purchases funded by grants and sponsorshi p payments from persons not listed in 
Annex 15-A; 
(e) procurement for the direct purpose of providing foreign assistance; 
(f) procurement of research and development services; 
(g) procurement of goods and services (including construction) outside the territory of 
the procuring Party, for consumption outside the territory of the procuring Party; and WT/REG184/1 
Page 124  
 
(h) acquisition of fiscal agency or deposit ory services, liquidation and management 
services for regulated financial institutions, and sale and distribution services for government debt. 
4. (a) The Parties acknowledge and reaffi rm the commitments made in the Memorandum of 
Agreement Between the Government of Aust ralia and the Government of the United 
States Concerning Reciprocal Defense Procurement , dated April 19, 1995 (the 
“MOA”) and acknowledge that the MOA, a nd any extension thereof, applies to 
certain defence procurements that are outside the scope of this Chapter. 
(b) The Parties will continue discussions on improving and expandi ng the relationship 
established by the MOA, recognising that th is Agreement will have no application to, 
or impact on, the MOA or any of the ri ghts and responsibilities established under the 
MOA.  
Compliance 
 
5. Each Party shall ensure that its procuring en tities comply with this Chapter in conducting 
covered procurements. 
Valuation 
 
6. In estimating the value of a procurement fo r the purpose of ascertaining whether it is a 
covered procurement, a procuring entity shall: 
(a) neither divide a procurement into separate procurements nor use a particular method 
for estimating the value of the procurement for the purpose of avoiding the 
application of this Chapter; 
(b) take into account all forms of remuneration, including any premiums, fees, 
commissions, interest, other revenue stream s that may be provided for under the 
contract, and, where the procurement provides for the possibility of option clauses, 
the total maximum value of the procuremen t, inclusive of optional purchases; and 
(c) without prejudice to paragraph 7, where the procurement is to be conducted in 
multiple parts, with contracts to be awarded at the same time or over a given period to 
one or more suppliers, base its calculation on the total maximum value of the procurement over its entire duration. 
7. In the case of procurement by lease or rental or procurement that does not specify a total 
price, the basis for estimating the value of the procurement shall be, with respect to: 
(a) a fixed-term contract, 
(i) where the term is 12 months or less, the total estimated contract value for the 
contract’s duration, or 
(ii) where the term exceeds 12 months, th e total estimated contract value, 
including the estimated residual value, or 
(b) a contract for an indefinite period, the estimated monthly instalment multiplied by 48. 
Where there is doubt as to whether the contract is to be a fixed-term contract, a procuring entity shall use the basis for estimating the value of the procurement 
described in this sub-paragraph.  WT/REG184/1 
 Page 125 
 
 
8. Where the total estimated maximum value of a procurement over its entire duration is not 
known, the procurement shall be  a covered procurement, unless otherwise excluded under this 
Agreement 
9. All orders under contracts awarded for covere d procurements shall be subject to Articles 
15.2.1 and 15.2.2. 
Article 15.2 
 
General Principles  
 
National Treatment and Non-Discrimination 
 
1. Each Party and its procuring entities shall acco rd unconditionally to the goods and services of 
the other Party and to the suppliers of the other Party offering the goods or services of that Party, 
treatment no less favourable than the most favourab le treatment the Party or the procuring entity 
accords to domestic goods, services and suppliers. 
2. A procuring entity of a Party may not: 
(a) treat a locally established supplier less favourably than other locally established 
suppliers on the basis of degree of fo reign affiliation or ownership; nor  
(b) discriminate against a locally established supplier on the basis that the goods or 
services offered by that supplier for a particular procurement are goods or services of the other Party. 
Procurement Methods 
 
3. A procuring entity may use: 
(a) open tendering procedures; 
(b) selective tendering procedures, in accordance with Article 15.7.6; and 
(c) limited tendering procedures, in accordance with Article 15.8. 
Rules of Origin 
 
4. Each Party shall apply to covered procurement of  goods the rules of origin that it applies in 
the normal course of trade to those goods. 
Offsets 
 
5. A procuring entity may not seek, take account of, impose, or enforce offsets in the 
qualification and selection of suppliers, goods, or services,  in the evaluation of tenders or in the award 
of contracts, before or in the course of a covered procurement. 
Measures Not Specific to Procurement 
 6. Paragraphs 1 and 2 shall not apply to custom s duties and charges of any kind imposed on or 
in connection with importation, the method of levying such duties and charges, other import 
regulations or formalities, and measures affecti ng trade in services other than measures governing 
covered procurements. WT/REG184/1 
Page 126  
 
Non-Disclosure of Information 
 
7. Nothing in this Chapter shall be construed as requiring a Party or its procuring entities to 
disclose, furnish, or allow access to confidentia l information furnished by a person where such 
disclosure might prejudice fair competition between s uppliers, without the authorization of the person 
that furnished the information. 
Article 15.3 
 
Publication Of Procurement Information
 
 
1. Each Party shall promptly publish the following information relating to covered 
procurements, and any changes or additions to this information, in electronic or paper media that are 
widely disseminated and remain readily accessible to the public: 
(a) laws, regulations, procedures,  and policy guidelines; and 
(b) judicial decisions and administrative rulings of general application. 
2. Each Party shall, on request, provide an expl anation relating to such information to the 
requesting Party. 
Article 15.4 
 
Publication Of Notice Of Intended Procurement  
 
1. For each covered procurement, except in the circumstances described in Articles  15.7.7(a) 
and (d) and 15.7.8, a procuring entity shall publish a notice inviting interested suppliers to submit 
tenders (“notice of intended procurement”) or, where appropriate, applications for participation in a 
procurement. The notice shall be published in electr onic or paper media that are widely disseminated 
and remain readily accessible to the public fo r the entire period established for tendering. 
2. A procuring entity shall include the followi ng information in each notice of intended 
procurement: 
(a) the name and address of the procuring en tity and other information necessary to 
contact the procuring entity and obtain all relevant documents relating to the 
procurement; 
(b) a description of the procurement and a ny conditions for participation; and 
(c) the address and the time limit for the submis sion of tenders and,  where appropriate, 
any time limit for the submission of an application for participation in a procurement, and the time frame for the delivery of goods or services. 
Notice of Planned Procurement 
 3. Each Party shall encourage its procuring entiti es to publish as early as possible in each fiscal 
year a notice regarding their procurement plans. Th e notice should include the subject matter of any 
planned procurement and the estimated date of the publication of the notice of intended procurement. 
Where the notice is published in accordance with Article 15.5.3(a), a proc uring entity may apply 
Article 15.5.3 for the purpose of establishi ng shorter time limits for tendering for covered 
procurements.  WT/REG184/1 
 Page 127 
 
 
Article 15.5 
 
Time Limits  
 1. A procuring entity shall prescribe time limits for tendering that allow suppliers adequate time 
to submit applications or requests to participat e in a covered procurement, including pursuant to 
Article 15.7.7(b) and (c), and to prepare and subm it responsive tenders, taking into account the nature 
and complexity of the procurement. 
2. Except as provided for in paragraphs 3 and 4, a procuring entity shall establish that the final 
date for the submission of tenders shall not be less than 30 days: 
(a) from the date on which the notice of in tended procurement is published; or 
(b) where the entity has used selective tenderi ng, from the date on which the entity 
invites suppliers to submit tenders. 
3. Under the following circumstances, a procuring entity may establish a time limit for tendering 
that is less than 30 days, provided that such time limit is sufficiently long to enable suppliers to 
prepare and submit responsive tenders a nd is in no case less than ten days:  
(a) where the procuring entity published a separ ate notice, including a notice of planned 
procurement under Article 15.4.3 at least 30 days and not more than 12 months in 
advance, and such separate notice contains a description of the procurement, the time 
limits for the submission of tenders or , where appropriate, applications for 
participation in a procurement, and the address from which documents relating to the 
procurement may be obtained; 
(b) where the procuring entity procures commercial goods or services; 
(c) in the case of second or subsequent publication of notices for procurement of a 
recurring nature; or 
(d) where a state of urgency duly substantiated by the procuring entity renders 
impracticable the time limits specified in paragraph 1.  
4. When a procuring entity publishes a notice of intended procurement in accordance with 
Article 15.4 in an electronic medium, or, in the case of selective tendering, issues an invitation to 
tender via an electronic medium and provides, to the extent practicable, the tender documentation via 
an electronic medium, the procuring entity may redu ce the time limit for submission of a tender by up 
to five days. In no case shall the procuring entity re duce either time limit to less than ten days from 
the date on which the notice of in tended procurement is published.  
5. Where a procuring entity intends to limit the s ubmission of tenders to all suppliers that the 
entity has determined have satisfied the conditions for participation, except where a notice of a multi-
use list has been readily accessible in electronic form  for a reasonable period, the entity shall include 
in an invitation to tender the time limit for submitti ng applications. Any conditions for participation in 
a tendering procedure shall be published sufficiently in  advance to enable interested suppliers of the 
other Party to initiate and, to the extent that it  is compatible with the efficient operation of the 
procurement process, complete the registration a nd qualification procedures within the time allowed 
for tendering. 
6. A procuring entity shall require all participa ting suppliers to submit tenders in accordance 
with a common deadline. For greater certainty,  this requirement also applies where:  WT/REG184/1 
Page 128  
 
(a) as a result of a need to amend informa tion provided to suppliers during the 
procurement process, the procuring entity ex tends the time limit for qualification or 
tendering procedures; or 
(b) negotiations are terminated and supplie rs are permitted to submit new tenders. 
Article 15.6 
 
Information On Intended Procurements
 
 
Tender Documentation 
 1. A procuring entity shall promptly provide, on request, to any supplier participating in a 
covered procurement, tender documentation that  includes all information necessary to permit 
suppliers to prepare and submit responsive tenders. Unless already provided in the notice of intended 
procurement, such documentation shall include a complete description of: 
(a) the procurement, including the nature, sc ope and, where known, the quantity of the 
goods or services to be procured and any re quirements to be fulfilled, including any 
technical specifications, conformity certifi cation, plans, drawings, or instructional 
materials; 
(b) any conditions for participation, including any financial guarantees, information, and 
documents that suppliers are required to submit; 
(c) all criteria to be considered in the awarding of the contract; 
(d) where there will be a public opening of tenders, the date, time, and place for the 
opening of tenders; and 
(e) any other terms or conditions relevant to the evaluation of tenders. 
2. A procuring entity shall promptly reply to any reasonable request for relevant information by 
a supplier participating in the c overed procurement, provided that the procuring entity may not make 
available information with regard to a specific proc urement in a manner that would give a supplier or 
group of suppliers an advantage over its  competitors in the procurement.  
Technical Specifications 
 
3. A procuring entity may not prepare, adopt, or apply any technical specification or prescribe 
any conformity assessment procedure with the pur pose or the effect of creating unnecessary obstacles 
to trade between the Parties.  
4. In prescribing the technical specifications for the good or service being procured, a procuring 
entity shall:  
(a) specify the technical specifications, wherever appropriate, in terms of performance 
and functional requirements, rather than d esign or descriptive characteristics; and 
(b) base the technical specifications on internati onal standards, where such exist and are 
applicable to the procuring entity, except wh ere the use of an international standard 
would fail to meet the procuring entity’ s program requirements or would impose 
greater burdens than the use of a recognized national standard.   WT/REG184/1 
 Page 129 
 
 
5. A procuring entity may not prescribe technical specifications that require or refer to a 
particular trademark or trade name, patent, copyri ght, design or type, specific origin, producer, or 
supplier, unless there is no other sufficiently precise or intelligible way of describing the procurement 
requirements and provided that, in such cases, word s such as “or equivalent” are included in the 
tender documentation. 
6. A procuring entity may not seek or accept, in a manner that would have the effect of 
precluding competition, advice that may be used in  the preparation or adoption of any technical 
specification for a specific procurement from a pers on that may have a commercial interest in the 
procurement. 
7. Notwithstanding paragraph 6, a procuring entity may: 
(a) conduct market research in developing specifi cations for a particular procurement; or  
(b) allow a supplier that has been engaged to  provide design or consulting services to 
participate in procurements related to su ch services, provided it would not give the 
supplier an unfair advant age over other suppliers.  
8. For greater clarity, this Article is not intended to preclude a procuring entity from preparing, 
adopting, or applying technical specifications to promote the conservation of natural resources and the 
environment. 
Modifications 
 
9. Where, during the course of a covered procurement, a procuring entity modifies the criteria or 
technical requirements set out in a notice or tende r documentation provided to participating suppliers, 
or amends or reissues a notice or tender documenta tion, it shall transmit all such modifications or 
amended or re-issued notice or tender documentation: 
(a) to all the suppliers that are participating at  the time the information is amended, if 
known, and in all other cases, in the same manner as the original information; and  
(b) in adequate time to allow such suppliers to modify and re-submit their initial tenders, 
as appropriate. 
Article 15.7 
 
Tendering Procedures  
 
Conditions for Participation 
 
1. A Party, and its procuring entities, shall limit any conditions for partic ipation in a covered 
procurement to those that ensure that a supplier has the legal, commercial,  technical, and financial 
abilities to fulfill the requirements of the procurement. 
2. In assessing whether a supplier satisfies the conditi ons for participation, a procuring entity: 
(a) shall evaluate the financial, commercial,  and technical abilities of a supplier on the 
basis of that supplier’s business activities bot h inside and outside the territory of the 
Party of the procuring entity; 
(b) may not impose the condition that, in orde r for a supplier to participate in a 
procurement, the supplier has previously b een awarded one or more contracts by a WT/REG184/1 
Page 130  
 
procuring entity of that Party or that the supplier has prior work experience in the territory of that Party; 
(c) shall base its determination of whether a supplier has satisfied the conditions for 
participation solely on the conditions that  the procuring entity has specified in 
advance in notices or tender documentation; and 
(d) may require relevant prior experience where essential to meet the requirements of the 
procurement. 
3. Nothing in this Article shall preclude the exclusion of a supplier on grounds such as: 
(a) bankruptcy; 
(b) false declarations; or 
(c) significant deficiencies in performance of any substantive requirement or obligation 
under a prior contract. 
Multi-Use Lists 
 
4. A Party, and its procuring entities, may establish a multi-use list provided that the procuring 
entity or other government agency annually publishe s or otherwise makes available continuously in 
electronic form a notice inviting interested suppliers to apply for inclusion on the list. The notice shall 
include: 
(a) a description of the goods and services, or categories thereof, for which the list may 
be used; 
(b) the conditions for participation to be satisfi ed by suppliers and the methods that the 
procuring entity or other government agency will use to verify a supplier’s 
satisfaction of the conditions; 
(c) the name and address of the procuring entit y or other government agency and other 
information necessary to contact the entity and obtain all relevant documents relating 
to the list; and 
(d) any deadlines for submission of applications for inclusion on that list. 
5. A procuring entity or other government agency that maintains a multi-use list shall include on 
the list all suppliers that satisfy the conditions for participation within a reasonably short time. 
Selective Tendering 
 
6. To ensure optimum effective competition un der selective tendering procedures, procuring 
entities shall, for each intended covered procuremen t, invite tenders from the largest number of 
domestic suppliers and suppliers of th e other Party that is consistent with the efficient operation of the 
procurement system. 
7. A procuring entity applying selective tendering procedures shall use, in accordance with 
paragraph 6: 
(a) a multi-use list, provided such a list is comp iled in accordance with the provisions of 
this Chapter and is appropriate to the type of procurement being undertaken;  WT/REG184/1 
 Page 131 
 
 
(b) a list of suppliers that have responded to  a notice inviting suppliers to submit 
applications for participation in a procurement;  
(c) a list of suppliers that have responded to a notice requesting all interested suppliers to 
express their interest in the procuremen t, provided that th e procuring entity: 
(i) publishes a notice requesting any inter ested supplier to submit an expression 
of its interest in the procurement and any information requested in the notice; 
the notice may be the notice of planned procurement under Article 15.4.3 where that notice invited suppliers to express their interest in the 
procurement; and 
(ii) sends an invitation to submit tenders to  all the suppliers that expressed an 
interest in the procurement, unless it has stated in the notice that it may limit 
the suppliers that it will invite, in  accordance with paragraph 8; or  
(d) a list of all the suppliers that have been gr anted a license or that have been determined 
by the appropriate agency, authority, or organization to comply with specific legal 
requirements that exist independent of the procurement process, provided that: 
(i) the requirement for a license or compliance with specific legal requirements 
is essential to the conduct of the procurement; 
(ii) the complete list of such suppliers is maintained by the appropriate agency, 
authority, or organization and is av ailable to the procuring entity; and 
(iii) the entity invites all the suppliers on the list to submit tenders in the 
procurement. 
8. Provided that relevant requirements and criteria have been specified in advance in a notice or 
in tender documentation, a procuring entity, in determining the suppliers  that will be invited to tender, 
under paragraphs 7(b) and (c) may:  
(a) in assessing technical ability, assess the exte nt to which the suppliers’ proposals or 
responses meet the technical and performance specifications of the procurement; and 
(b) limit the number of suppliers that it invites to tender based on the rating of the 
supplier proposals or responses. 
9. A procuring entity shall apply the time limits set out in Article 15.5 for responses to the 
notices referred to in paragraphs 7(b) and (c). 
Information on Procuring Entity Decisions 
 10. Where a supplier applies for participation in  a covered procurement, including through a 
procedure described in paragraphs 7(b) or (c), or for inclusion on a list referred to in paragraph 4, a 
procuring entity shall promptly advise such supplier of its decision with respect to its application. 
11. Where a procuring entity: 
(a) rejects an application for participation in a covered procurement, including an 
application through a procedure describ ed in paragraph 7(b) or (c); 
(b) rejects a request for inclusion on a list, referred to in paragraph 4, or  WT/REG184/1 
Page 132  
 
(c) ceases to recognize a supplier as having satisfi ed the conditions for participation; 
the procuring entity shall promptly inform the supp lier and, on request of such supplier, promptly 
provide the supplier with a written explan ation of the reasons for its decision. 
 
Article 15.8 
 
Limited Tendering
 
 1. Provided that it does not use this provision for the purpose of avoiding competition, to protect 
domestic suppliers, or in a manner that discriminates against suppliers of the other Party, a procuring 
entity may contact a supplier or suppliers of its  choice and may choose not to apply Articles 15.4 
through 15.7, 15.9.1, and 15.9.3 through 15.9.7 in relation to a covered procurement in any of the 
following circumstances: 
(a) where, in response to a prior notice, invitati on to participate, or invitation to tender, 
(i) no tenders were submitted,  
(ii) no tenders were submitted that conform to the essential requirements in the 
tender documentation, or 
(iii) no suppliers satisfied the c onditions for participation, 
and the entity does not substantially modify the essential requirements of the 
procurement; 
(b) where the goods or services can be supplied only by a particular supplier and no 
reasonable alternative or substitute goods or services exist for the following reasons: 
(i) the requirement is for works of art; 
(ii) the protection of patents, copyrights, or other exclusive rights, or proprietary 
information; or 
(iii) due to an absence of competition for technical reasons; 
(c) for additional deliveries of goods or services by the original supplier or authorized 
representative that are intended either as repl acement parts, extensions, or continuing 
services for existing equipment, software, services, or installations, where a change of supplier would compel the procuring entity to procure goods or services that do not 
meet requirements of interchangeability with existing equipment; 
(d) for goods purchased on a commodity market; 
(e) where a procuring entity procures a prototype or a first good or service that is 
intended for limited trial or that is develope d at its request in the course of, and for, a 
particular contract for research, experi ment, study, or original development; 
(f) in so far as is strictly necessary where, fo r reasons of extreme urgency brought about 
by events unforeseen by the procuring entity, the goods or services could not be 
obtained in time under tendering procedures consistent with Article 15.4 through 
15.7;  WT/REG184/1 
 Page 133 
 
 
(g) for new construction services consisting of  the repetition of similar construction 
services that conform to a basic project for which an initial contract was awarded 
following use of open tendering or selective tendering in accordance with this Chapter and for which the entity has indicat ed in the notice of intended procurement 
concerning the initial construction service, th at limited tendering procedures might be 
used in awarding contracts for those construction services; 
(h) for purchases made under exceptionally advantag eous conditions that only arise in the 
very short term, such as from unusual dis posals, unsolicited innovative proposals, 
liquidation, bankruptcy, or receivership a nd not for routine purchases from regular 
suppliers; or 
(i) in the case of a contract awarded to the winner of a design contest provided that:  
(i) the contest has been organized in a ma nner that is consistent with this 
Chapter, and  
(ii) the contest is judged by an independent jury with a view to a design contract 
being awarded to the winner. 
2. For each contract awarded under paragraph 1, a procuring entity shall prepare a written report 
that includes: 
(a) the name of the procuring entity; 
(b) the value and kind of goods or services procured; and 
(c) a statement indicating the circumstances and conditions described in paragraph 1 that 
justify the use of a procedure other than open or selective tendering procedures. 
Article 15.9 
 
Treatment Of Tenders And Awarding Of Contracts
 
 
Receipt and Opening of Tenders 
 
1. A procuring entity shall receive and open a ll tenders under procedures that guarantee the 
fairness and impartiality of the procurement process. 
2. A procuring entity shall treat tenders in confidence. In particular, it shall not provide 
information to particular suppliers that mi ght prejudice fair competition between suppliers. 
3. A procuring entity shall not penalize any supp lier whose tender is received after the time 
specified for receiving tenders if the delay is due so lely to mishandling on th e part of the procuring 
entity. 
4. Where a procuring entity provides suppliers with  opportunities to correct unintentional errors 
of form between the opening of tenders and the awar ding of the contract, the procuring entity shall 
provide the same opportunities to  all participating suppliers. WT/REG184/1 
Page 134  
 
Awarding of Contracts 
 
5. A procuring entity may not consider a tender fo r award unless, at the time of opening, the 
tender conforms to the essential requirements of all notices issued during the course of a covered 
procurement or tender documentation. 
6. Unless a procuring entity determines that it is not in the public interest to award a contract, it 
shall award a contract to the supplier that the entity has determined satisfies the conditions for 
participation and is fully capable of undertaking the contract and whose tender is determined to be the 
lowest price, the best value, or the most advant ageous, in accordance with the essential requirements 
and evaluation criteria specified in the notices and tender documentation. 
7. A procuring entity may not cancel a covered proc urement, nor terminate or modify awarded 
contracts so as to circumvent the requirements of this Chapter. 
Information Provided to Suppliers 
 
8. A procuring entity shall promptly inform suppliers  that have submitted tenders of the contract 
award decision. Subject to Article 15.2.7, a procur ing entity shall, on requ est, provide an unsuccessful 
supplier with the reasons that the entity did not select its tender.  
Publication of Award Information 
 
9. Not later than 60 days after the award of a c ontract for a covered procurement, a procuring 
entity shall publish a notice in an officially designa ted publication, which may be in an electronic or 
paper medium. The notice shall include at least the following information about the contract: 
(a) the name and address of the procuring entity; 
(b) a description of the goods or services procured; 
(c) the date of award or the contract date; 
(d) the contract value; 
(e) the name and address of the successful supplier; and 
(f) the procurement method used. 
Provision of Information to the Other Party 
 
10. On request of the other Party, a Party shall provide information on the tender and evaluation 
procedures used in the conduct of a covered procurem ent sufficient to demonstrate that the particular 
procurement was conducted fairly, im partially, and in accordance with this Chapter. The information 
shall include, at a minimum, the information specified  in Article 15.8.2, and, to the extent necessary 
and without disclosing confidential information,  information on the characteristics and relative 
advantages of the successful tender and on the contract price.  
Maintenance of Records 
 
11. A procuring entity shall maintain records a nd reports of tendering procedures relating to 
covered procurements, including the reports provided for in Article 15.8, and shall retain such records 
and reports for a period of at least three years after the award of a contract.   WT/REG184/1 
 Page 135 
 
 
Article 15.10 
 
Ensuring Integrity In Procurement Practices  
 1. Each Party shall ensure that criminal or administrative penalties exist to sanction:  
(a) a procurement official of that Party who solic its or accepts, directly or indirectly, any 
article of monetary value or other benefit, for that procurement official or for another 
person, in exchange for any act or omissi on in the performance of that procurement 
official’s procurement functions; 
(b) any person who offers or grants, directly or  indirectly, to a procurement official of 
that Party, any article of monetary value or other benefit, for that procurement official 
or for another person, in exchange for any act or omission in the performance of his or her procurement functions; and  
(c) any person intentionally offering, promising or giving any undue pecuniary or other 
advantage, whether directly or through intermediaries, to a foreign procurement 
official, for that foreign procurement official or a third party, in order that the foreign 
procurement official act or refrain from acting in relation to the performance of 
procurement duties, in order to obtain or retain business or other improper advantage. 
Article 15.11 
 
Domestic Review Of Supplier Challenges
 
 
1. In the event of a complaint by a supplier of a Party that there has been a breach of the other 
Party’s measures implementing this Chapter in the context of a covered procurement in which the 
supplier has or had an interest, the Party of the pr ocuring entity shall encourage the supplier to seek 
resolution of its complaint in consultation with th e procuring entity. In such instances the procuring 
entity shall accord timely and impartial c onsideration to any such complaint. 
2. Each Party shall maintain at least one impartial administrative or judicial authority that is 
independent of its procuring entities to receive an d review challenges that suppliers submit, in 
accordance with the Party’s law, relating to a covere d procurement. Each Party shall ensure that any 
such challenge not prejudice the supplier’s particip ation in ongoing or future procurement activities. 
3. Where a body other than an authority referred to  in paragraph 2 initiall y reviews a challenge, 
the Party shall ensure that the supplier may appeal the initial decision to an impartial administrative or 
judicial authority that is independent of the proc uring entity that is the subject of the challenge. 
4. Each Party shall ensure that the authorities refe rred to in paragraph 2 have the power to take 
prompt interim measures, pending the resolution of a challenge, to preserve the supplier’s opportunity 
to participate in the procurement and to ensure that  the procuring entities of the Party comply with its 
measures implementing this Chapter. Such inte rim measures may include, where appropriate, 
suspending the contract award or the performance of a contract that has already been awarded. 
5. Each Party shall ensure that its review pr ocedures are conducted in accordance with the 
following: 
(a) a supplier shall be allowed sufficient time to prepare and submit a written challenge, 
which in no case shall be less than ten da ys from the time when the basis of the 
complaint became known or reasonably shoul d have become known to the supplier; WT/REG184/1 
Page 136  
 
(b) a procuring entity shall respond in writing to  a supplier’s complaint and provide all 
relevant documents to the review authority; 
(c) a supplier that initiates a complaint shall be  provided an opportunity to reply to the 
procuring entity’s response before the review authority takes a decision on the complaint; and 
(d) the review authority shall provide its deci sion on a supplier’s challenge in a timely 
fashion, in writing, with an explana tion of the basis for the decision.  
Article 15.12 
 
Exceptions
 
 
1. Subject to the requirement that such measu res are not applied in a manner that would 
constitute a means of arbitrary or unjustifiabl e discrimination between Parties where the same 
conditions prevail, or a disguised restriction on inte rnational trade, nothing in this Chapter shall be 
construed to prevent a Party from adopting or maintaining measures: 
(a) necessary to protect public morals, order or safety; 
(b) necessary to protect human, animal, or plant life or health; 
(c) necessary to protect intellectual property; or 
(d) relating to the goods or services of handi capped persons, of philanthropic or not for 
profit institutions, or of prison labour. 
2. The Parties understand that sub-paragraph 1(b) includes environmental measures necessary to 
protect human, animal or plant life or health. 
Article 15.13 
 
Modifications And Rectifications To Coverage  
 
1. The Joint Committee shall modify the relevant section of Annex 15-A to reflect any agreed 
modification, rectification, or minor amendment in the following circumstances: 
(a) each Party may make rectifications of a pur ely formal nature to its coverage under 
this Chapter, or minor amendments to its Schedules to Section 1, 2, or 3 of Annex 15-
A, provided that it notifies the other Part y in writing and the other Party does not 
object in writing within 30 days of the notification. A Party that makes such a 
rectification or minor amendment need not provide compensatory adjustments.  
(b) each Party may otherwise modify its covera ge under this Chapter provided that it:  
(i) notifies the other Party in writing and that Party does not object in writing 
within 30 days of the notification; and 
(ii) offers within 30 days of the notification compensatory adjustments 
acceptable to the other Party to maintain a level of coverage comparable to 
that existing prior to the modification, where necessary.  WT/REG184/1 
 Page 137 
 
 
2. A Party need not provide compensatory adjustme nts where the Parties ag ree that the proposed 
modification covers a procuring entity over which a Party has effectively eliminated its control or 
influence in respect of procurement by that entit y. Where a Party objects to the assertion that such 
government control or influence has been effectively eliminated, the objecting Party may request further information or consultations with a view to clarifying the nature of any government control or 
influence and reaching agreement on the proc uring entity’s status under this Chapter. 
3. Each Party shall continue to encourage incr eased participation under this Chapter by its 
regional government entities. 
Article 15.14 
 
Cooperation
 
 1. The Parties recognize their shared interest in promoting international liberalization of 
government procurement markets in the context of  the rules-based intern ational trading system, 
including in the WTO and Asia Pacific Economic Cooperation. 
2. Not later than 24 months after the date of entry into force of this Agreement, and at least 
biennially thereafter, the Joint Commission shall review the operation and implementation of this 
Chapter. 
Article 15.15 
 
Definitions
 
 
 For the purposes of this Chapter:  1. build-operate-transfer contract and public works concession contract  mean any 
contractual arrangement the primary purpose of which is to provide for the construction or 
rehabilitation of physical infrastructure, plant, bu ildings, facilities, or other government owned works 
and under which, as consideration for a supplier’s ex ecution of a contractual arrangement, a procuring 
entity grants the supplier, for a specified period of time, temporary ownership or a right to control and 
operate, and demand payment for the use of su ch works for the duration of the contract; 
2. commercial goods and services  mean goods and services of a type of goods and services that 
are sold or offered for sale to, and customar ily purchased by, non-governmental buyers for non-
governmental purposes; it includes goods and services with modifications customary in the 
commercial marketplace, as well as minor modificati ons not customarily available in the commercial 
marketplace; 
3. conditions for participation  means registration, qualification, and other pre-requisites for 
participation in a procurement; 
4. in writing or written  means any worded or numbered  expression that can be read, 
reproduced, and later communicated. It may include electronically transmitted and stored information; 
5. measure , as defined in Article 1.2.15, includes any guidelines; 
6. multi-use list  means a list of suppliers that a proc uring entity has determined satisfy the 
conditions for participation in that  list, and that the procuring entity intends to use more than once; WT/REG184/1 
Page 138  
 
7. offsets  means any conditions or undertakings that require use of domestic content, domestic 
suppliers, the licensing of technology, technology transfer, investment, counter-trade, or similar 
actions to encourage local development or to improve a Party’s balance-of-payments accounts; 
8. open tendering  means a procurement method where a ll interested suppliers may submit a 
tender; 
9. procurement official  means any person who perfo rms procurement functions; 
10. procuring entity  means an entity listed in Sections 1 through 3 of Annex 15-A; 
11. selective tendering  means a procurement method where the procuring entity determines the 
suppliers that it will invite to submit tenders; 
12. services  includes construction services, unless otherwise specified; 
13. supplier  means a person that provides or could provide goods or services to a procuring 
entity; and 
14. technical specification  means a tendering requirement that: 
(a) sets out the characteristics of: 
(i) goods to be procured, including quality,  performance, safety and dimensions, 
or the processes and methods for their production; or 
(ii) services to be procured, or the processes or methods for their provision, 
including any applicable administrative provisions; or 
(b) addresses terminology, symbols, packaging,  marking, or labelling requirements, as 
they apply to a good or service. 
 
ANNEX 15-A 
 
Section 1: Central Government Entities
 
 
1. This Chapter applies to central government en tities listed in each Party’s Schedule to this 
Section where the value of the procurement is estim ated, in accordance with Article 15.1.6 and 15.1.7, 
to equal or exceed: 
(a) for procurement of goods and services: 
   A$81,800 or US$58,550 
 
(b) for procurement of construction services: 
   A$9,396,000 or US$6,725,000. 
  The monetary thresholds set out  in sub-paragraphs (a) and (b) shall be adjusted in accordance 
with Section 8 of this Annex.   WT/REG184/1 
 Page 139 
 
 
Schedule of Australia1,2 
 
1. Agriculture, Fisheries and Forestry Portfolio  
  Department of Agriculture, Fisheries and Forestry 
 Dairy Adjustment Authority 
 2.  Attorney-General’s Portfolio
  
  Attorney-General’s Department   
 Administrative Appeals Tribunal 
 Australian Crime Commission   Australian Customs Service  Australian Federal Police  AUSTRAC 
 Classification Board 
 Classification Review Board  CrimTrac Agency  Family Court of Australia  Federal Court of Australia  Federal Magistrates Court 
 Human Rights and Equal Opportunity Commission 
 Insolvency and Trustee Service Australia (ITSA)  National Native Title Tribunal  Office of Film and Literature Classification  Office of Parliamentary Counsel 
 Office of the Director of Public Prosecutions 
 Office of the Privacy Commissioner  3. Communications, Information Technology and the Arts Portfolio
 
  Department of Communications, In formation Technology and the Arts 
 National Archives of Australia 
 Australian Government Information Management Office  4. Defence Portfolio
 
 
 Department of Defence3 
 Department of Veterans’ Affairs  5. Education, Science and Training Portfolio
 
  Department of Education, Science and Training 
 Australian Research Council 
 6. Employment and Workplace Relations Portfolio
 
  Department of Employment and Workplace Relations 
 Australian Industrial Registry 
 Equal Opportunity for Women in the Workplace Agency  Seafarers Safety, Rehabilitation and Compensation Authority (Seacare Authority) 
 7. Environment and Heritage Portfolio
 
 WT/REG184/1 
Page 140  
 
 Department of Environment and Heritage  Australian Greenhouse Office  Bureau of Meteorology  National Oceans Office  Office of the Renewable Energy Regulator 
 
8. Family and Community Services Portfolio
 
  Department of Family and Community Services  Centrelink 
 
9. Finance and Administration Portfolio
 
  Department of Finance and Administration  Australian Electoral Commission 
 Commonwealth Grants Commission 
 ComSuper  CSS Board
4 
 PSS Board4 
 10. Foreign Affairs and Trade Portfolio
 
 
 Department of Foreign Affairs and Trade  AusAid  Australia-Japan Foundation  Australian Centre for Intern ational Agricultural Research 
 
11. Health and Ageing Portfolio
 
  Department of Health and Ageing  Australian Radiation Protection and Nuclear Safety Agency (ARPANSA)  National Blood Authority 
 Professional Services Review Scheme 
 12. Immigration and Multicultural and Indigenous Affairs Portfolio
 
  Department of Immigration and Multicultural and Indigenous Affairs 
 Migration Review Tribunal 
 Refugee Review Tribunal  13. Industry, Tourism a nd Resources Portfolio
 
  Department of Industry, Tourism and Resources 
 Geoscience Australia 
 IP Australia  14. Prime Minister and Cabinet Portfolio
 
 
 Department of the Prime Minister and Cabinet 
 Australian National Audit Office  Australian Public Service Commission  Commonwealth Ombudsman Office  Office of the Inspector-General  of Intelligence and Security 
 Office of the Official Secretary of the Governor-General  WT/REG184/1 
 Page 141 
 
 
 15. Transport and Regional Services Portfolio
 
 
 Department of Transport and Regional Services 
 National Capital Authority 
 
16. Treasury Portfolio  
   Department of the Treasury  Australian Bureau of Statistics 
 Australian Competition and Consumer Commission 
 Australian Office of Financial Management (AOFM)  Australian Taxation Office  Inspector General of Taxation  National Competition Council 
 Productivity Commission 
 17. Parliamentary Departments
 
  Department of the House of Representatives  Department of the Senate 
 Department of Parliamentary Services 
 
Notes to the Schedule of Australia 
 
1. This Chapter covers only those entities subordinate to the releva nt portfolio which are listed 
in this Schedule. 
2. This Chapter does not cover the procurement of  motor vehicles by any entity listed in this 
Section. 
3. Department of Defence
 
(a) This Chapter does not cover the procuremen t of the following goods due to Article 
22.2 (Essential Security): 
 Approximately 
 equivalent to: 
Weapons  FSC 10 Fire Control Equipment  FSC 12 Ammunition and Explosives  FSC 13 
Guided Missiles  FSC 14 
Aircraft and Airframe Structural Components  FSC 15 Aircraft Components and Accessories  FSC 16 Aircraft Launching, Landing, & Ground Handling Equipment  FSC 17 Space Vehicles  FSC 18 Ships, Small Craft, Pontoons and Floating Docks  FSC 19 
Ship and Marine Equipment  FSC 20 
Ground Effect Vehicles, Motor Vehicles, Trailers and Cycles  FSC 23 Engines, Turbines, and Components  FSC 28 Engines Accessories  FSC 29 Bearings  FSC 31 
Water Purification and Sewage Treatment Equipment  FSC 46 
Valves  FSC 48 WT/REG184/1 
Page 142  
 
Maintenance and Repair Shop Equipment  FSC 49 Prefabricated Structures and Scaffolding  FSC 54 Communication, Detection, and Cohe rent Radiation Equipment  FSC 58 
Electrical and Electronic Equipment Components  FSC 59 Fiber Optics Materials, Components, Assemblies, and 
Accessories  FSC 60 
Electric Wire, and Power and Distribution Equipment  FSC 61 Alarm, Signal and Security Detection Systems  FSC 63 Instruments and Laboratory Equipment  FSC 66 Specialty Metals  No Code 
 
NB: Whether a good is included within the scope of th is Note shall be determined solely according to 
the descriptions provided in the left column above. U.S. Federal Supply Codes are provided for 
reference purposes only. (For a complete listing of the United States Federal Supply Codes, to which 
the Australian categories are approximately equi valent, see http://www.scrantonrtg.com/secrc/fsc-
codes/fsc.html.). 
 
(b) For Australia, this Chapter does not cover the following services, as elaborated in the 
Common Classification System and the WTO system of classification – MTN.GNS/W/120, due to Article 22.2. ( For a complete listing of Common 
Classification System, see :  
http://www.tcc.mac.doc.gov/cgibin/doit.cg i?204:66:601961876:49 #An1001.1b-2-B.)  
 
• Design, development, integration, te st, evaluation, maintenance, repair, 
modification, rebuilding and installatio n of military systems and equipment 
(approximately equivalent to relevant part s of U.S. Product Service         
Codes A & J) 
 
• Operation of Government-owned Faciliti es (approximately equivalent to U.S. 
Product Service Code M) 
 
• Space services (AR, B4 & V3) 
 
• Services in support of military forces overseas 
 
(c) This Chapter does not cover the procuremen t of goods and services by, or on behalf 
of, the Defence Intelligence Organisation, th e Defence Signals Directorate, or the 
Defence Imagery and Geospatial Organisation. 
(d) In respect of Article 15.2, the Australian Government reserves the right, pursuant to 
Article 22.2, to maintain the Australia n Industry Involvement program and its 
successor programs and policies. 
4. Department of Finance and Administration
 This Chapter does not cover procurement by the 
PSS Board or the CSS Board of investment management, investment advisory, or master custody and safekeeping services for the purposes of managing and investing the assets of the CSS and PSS Funds. 
Schedule of the United States 
1  
 1.  Advisory Commission on Intergovernmental Relations 
2.  Africa Development Foundation 3.  Alaska Natural Gas Transportation System 4.  American Battle Monuments Commission  WT/REG184/1 
 Page 143 
 
 
5.  Appalachian Regional Commission 6.  Broadcasting Board of Governors 7.  Commission of Fine Arts 8.  Commission on Civil Rights 9.  Commodity Futures Trading Commission 
10.  Consumer Product Safety Commission 
11.  Corporation for National and Community Service 12.  Delaware River Basin Commission 13.  Department of Agriculture
2 
14.  Department of Commerce3 
15.  Department of Defense4 
16.  Department of Education 17.  Department of Energy
5 
18.  Department of Health and Human Services 19.  Department of Homeland Security
6 
20.  Department of Hous ing and Urban Development 
21.  Department of the Interior, including the Bureau of Reclamation 22.  Department of Justice 23.  Department of Labor 24.  Department of State 25.  Department of Transportation
7 
26.  Department of the Treasury 
27.  Department of Veterans Affairs 28.  Environmental Protection Agency 29.  Equal Employment Opportunity Commission 30.  Executive Office of the President 
31.  Export-Import Bank of the United States 
32.  Farm Credit Administration 33.  Federal Communications Commission 34.  Federal Crop Insurance Corporation 35.  Federal Deposit Insurance Corporation 36.  Federal Election Commission 
37.  Federal Home Loan Mortgage Corporation 
38.  Federal Housing Finance Board 39.  Federal Maritime Commission 40.  Federal Mediation and Conciliation Service 
41.  Federal Mine Safety and Health Review Commission 
42.  Federal Prison Industries, Inc. 
43.  Federal Reserve System 44.  Federal Retirement Thrift Investment Board 45.  Federal Trade Commission 46.  General Services Administration
8 
47.  Government National Mortgage Association 
48.  Holocaust Memorial Council 
49.  Inter-American Foundation 50.  Merit Systems Protection Board 51.  National Aeronautics and Space Administration (NASA) 52.  National Archives and Records Administration 
53.  National Capital Planning Commission 
54.  National Commission on Libraries and Information Science 55.  National Council on Disability 56.  National Credit Union Administration 57.  National Foundation on the Arts and the Humanities 
58.  National Labor Relations Board WT/REG184/1 
Page 144  
 
59.  National Mediation Board 60.  National Science Foundation 61.  National Transportation Safety Board 62.  Nuclear Regulatory Commission 63.  Occupational Safety a nd Health Review Commission 
64.  Office of Government Ethics 
65.  Office of the Nuclear Waste Negotiator 66.  Office of Personnel Management 67.  Office of Special Counsel 68.  Office of Thrift Supervision 
69.  Overseas Private Investment Corporation 
70.  Peace Corps 71.  Pennsylvania Avenue Development Corporation 72.  Railroad Retirement Board 73.  Securities and Exchange Commission 
74.  Selective Service System 
75.  Small Business Administration 76.  Smithsonian Institution 77.  Susquehanna River Basin Commission 78.  United States Agency for International Development 79.  United States International Trade Commission 
 
Notes to the Schedule of the United States 
 
1. Unless otherwise specified in this Schedule, a ll agencies subordinate to the listed entities are 
covered by this Chapter. 
2. Department of Agriculture
: This Chapter does not cover the procurement of agricultural 
goods made in furtherance of agricultural s upport programs or human feeding programs. 
3. Department of Commerce : This Chapter does not cover sh ipbuilding activities of the U.S. 
National Oceanic and Atmospheric Administration (NOAA). 
4. Department of Defense : This Chapter does not cover th e procurement of the goods listed 
below. ( For a complete listing of U.S. Federal Supply Classification, see 
www.scrantonrtg.com/secrc/fsc-codes/fsc.html .) 
 (a)  FSC 11  Nuclear Ordnance 
  FSC 18  Space Vehicles   FSC 19  Ships, Small Craft, Pontoons, and Floating Docks (the part of this 
classification defined as naval vessels or major components of the 
hull or superstructure thereof) 
  FSC 20   Ship and Marine Equipment (the part of this classification defined as 
naval vessels or major components of the hull or superstructure 
thereof) 
  FSC 2310  Passenger Motor Vehicles (only Buses)   FSC 2350  Combat, Assault & Tactical Vehicles, Tracked 
  FSC 5l  Hand Tools 
  FSC 52  Measuring Tools   FSC 60  Fibre Optics Materials, Co mponents, Assemblies, and Accessories 
  FSC 8140  Ammunition & Nuclear Or dnance Boxes, Packages & Special 
Containers  WT/REG184/1 
 Page 145 
 
 
  FSC 83  Textiles, Leather, Furs, Apparel, Shoes, Tents, and Flags (all elements 
other than pins, needles, sewing kits, flagstaffs, flagpoles and flagstaff trucks) 
  FSC 84  Clothing, Individual Equipment, and Insignia (all elements other than 
sub-class 8460 - luggage) 
  FSC 89   Subsistence (all elemen ts other than sub-class 8975-tobacco 
products). 
 
(b) “Specialty metals,” defined as steels melte d in steel manufacturing facilities located 
in the United States or its possessions, where the maximum alloy content exceeds one 
or more of the following limits, must be used in products purchased by the 
Department of Defense: (1) manganese, 1.65  percent; silicon, 0.60 percent; or copper, 
0.60 percent; or which contains more than 0.25 percent of any of the following elements: aluminum, chromium, cobalt, columbium, molybdenum, nickel, titanium, tungsten or vanadium; (2) meta l alloys consisting of nickel, iron-nickel and cobalt 
base alloys containing a total of other alloying metals (except iron) in excess of 10 
per cent; (3) titanium and titanium allo ys; or (4) zirconium base alloys. 
(c) For the United States, this Chapter genera lly does not cover the procurement of the 
goods in the following FSC categories, due to  application of Article 22.2 (Essential 
Security): 
 FSC 10  Weapons 
 FSC 12  Fire Control Equipment 
 FSC 13  Ammunitions and Explosives  FSC 14  Guided Missiles  FSC 15  Aircraft and Airframe Structural Components  FSC 16  Aircraft Components and Accessories 
 FSC 17  Aircraft Launching, Landing, and Ground Handling Equipment 
 FSC 19  Ships, Small Craft, Pontoons, and Floating Docks  FSC 20  Ship and Marine Equipment  FSC 28  Engines, Turbines, and Components  FSC 31  Bearings  FSC 58  Communications, Detection, and Coherent Radiation 
 FSC 59  Electrical and Electronic Equipment Components 
 FSC 95  Metal Bars, Sheets, and Shapes  5. Department of Energy
: This Chapter does not cover national security procurements made in 
support of safeguarding nuclear materials or technol ogy and entered into under the authority of the 
Atomic Energy Act , or oil purchases related to the Strategic Petroleum Reserve. 
6. Department of Homeland Security:  
(a) This Chapter does not cover procurement by the Transportation Security 
Administration. 
(b) The essential security interests of the United States equally apply to the United States 
Coast Guard. 
7. Department of Transportation:  This Chapter does not cove r procurement by the Federal 
Aviation Administration. 
8. General Services Administration:  This Chapter does not cover the procurement of the goods 
in the following FSC categories: WT/REG184/1 
Page 146  
 
 FSC 5l  Hand Tools  FSC 52  Measuring Tools  FSC 7340  Cutlery and Flatware  
Section 2 : Regional Government Entities
 
 
1. This Chapter applies to the regional government en tities listed in each Party’s Schedule to this 
Section where the value of the procurement is estim ated, in accordance with Article 15.1.6 and 15.1.7, 
to equal or exceed: 
(a) for procurement of goods and services: 
   A$666,000 or US$477,000; 
 
(b) for procurement of construction services: 
   A$9,396,000 or US$6,725,000. 
 
 The monetary thresholds set out in paragraph 1 shall be adjusted in accordance with Section 8 
of this Annex.  
Schedule of Australia
 
 
 This Chapter covers only those entities specifically listed in this Schedule. 
 
Australian Capital Territory  
 
ACT Auditor-General’s Office ACT Electoral Commission 
ACT Gambling and Racing Commission 
ACT Health ACT Insurance Authority ACT Planning and Land Authority ACT Planning and Land Council ACT Workcover 
ACTION 
Australia Capital Tourism Corporation Chief Minister’s Department Cultural Facilities Corporation Department of Disability, Housing and Community Services 
Department of Education, Youth and Family Services 
Department of Justice and Community Safety Department of Treasury Department of Urban Services Director of Public Prosecutions Environment Commissioner 
Human Rights Office 
Legal Aid Office National Exhibition Centre Trust Ombudsman of the ACT The Independent Competition and Regulatory Commission 
 
 For the entities listed for the Australian Capita l Territory, this Chapter does not cover the 
procurement of health and welfare services, edu cation services, utility services, or motor vehicles.  WT/REG184/1 
 Page 147 
 
 
 
New South Wales  
 
Agriculture and Fisheries Portfolio  
Department of Agriculture 
New South Wales Fisheries 
Rural Assistance Authority Safe Food Production  Attorney General and Environment Portfolio
 
Attorney General’s Department 
Department of Environment and Conservation Legal Aid Commission Office of the Director of Public Prosecutions Public Trust Office 
 
Commerce and Industrial Relations Portfolio
 
Department of Commerce Motor Accidents Authority Motor Vehicle Repair Industry Authority WorkCover Authority 
 
Community Services, Ageing, Disability Services, and Youth Portfolio
 
Commission for Children and Young People Department of Ageing, Disability and Home Care Department of Community Services 
Office of the Children’s Guardian 
 Education and Training and Aboriginal Affairs Portfolio
 
Aboriginal Housing Office Department of Aboriginal Affairs Department of Education and Training 
Office of the Board of Studies 
 Energy and Utilities, Science and Medi cal Research, and Cancer Portfolio
 
Ministry for Science and Medical Research Ministry of Energy, Utilities and Sustainability 
 
Gaming and Racing Portfolio
 
Department of Gaming and Racing  Health Portfolio
 
Department of Health 
Health Care Complaints Commission 
 Infrastructure and Planning and Natural Resources Portfolio
 
Department of Infrastructure, Planning and Natural Resources Sydney Harbour Foreshore Authority 
 
Justice Portfolio
 
Department of Corrective Services  Juvenile Justice and Planning Administration Portfolio
 
Department of Juvenile Justice WT/REG184/1 
Page 148  
 
Heritage Office  Mineral Resources Portfolio
 
Department of Mineral Resources  
Police Portfolio
 
Ministry for Police New South Wales Crime Commission Police Integrity Commission  
Premier, Arts, and Citizenship Portfolio
 
Community Relations Commission Ministry for the Arts Ombudsman’s Office Parliamentary Counsel’s Office 
Premier’s Department 
State Electoral Office The Audit Office of New South Wales The Cabinet Office  Regional Development and Small Business Portfolio
 
Department of State and Regional Development 
 Rural Affairs, Local Government, Em ergency Services, and Lands Portfolio
 
Department of Lands Department of Local Government 
Department of Rural Fire Service 
New South Wales Fire Brigades State Emergency Service  Tourism and Sport and Recreation and Women Portfolio
 
Department for Women 
Department of Tourism, Sport and Recreation 
 Transport Services and Forests Portfolio
 
Ministry of Transport State Forests, Forestry Commission 
 
Treasurer and State Development Portfolio
 
Sydney Olympic Park Authority NSW Treasury  1. For the entities listed for New South Wales, this  Chapter does not cover the procurement of 
health and welfare services, education services, or motor vehicles. 
2. Australia shall phase-out the non-compliant o ffset and preference schemes of New South 
Wales within three years after the date of  entry into force of this Agreement. 
3. For the entities listed for New South Wales, th e Chapter does not apply to procurements 
undertaken by a covered entity on behalf of a non-covered entity.  
Northern Territory
 
 
Chief Minister’s Portfolio   WT/REG184/1 
 Page 149 
 
 
Department of the Chief Minister Auditor General’s Office Department of Legislative Assembly Ombudsman’s Office Remuneration Tribunal 
 
Asian Relations and Trade, Business and Industry, Mines and Energy, Primary Industry and Fisheries 
and Defence Support Portfolio  
Department of Business, Industry and Resource Development  
Indigenous Affairs Portfolio
 
Aboriginal Areas Protection Authority  Arts and Museums, Community Development, Spor t and Recreation, Regional Development Portfolio
 
Department of Community Developm ent, Sport and Cultural Affairs 
Museum and Art Galleries 
Strehlow Centre Board  Employment, Education and Training Portfolio
 
Office of the Commissioner for Public Employment Northern Territory Employment and Training Authority 
Work Health Authority 
 Health, Family and Community Services Portfolio
 
Department of Health and Community Services Health and Community Services Complaints Commission 
 
Justice and Attorney –General’s Portfolio
 
Department of Justice  Lands and Planning Portfolio
 
Land Development Corporation 
 
Parks and Wildlife Portfolio  
Parks and Wildlife Commission of the Northern Territory  Police, Fire and Emergency Services Portfolio
 
Northern Territory Emergency Service 
Northern Territory Fire and Rescue Service Police Force of the Northern Territory  Racing, Gaming and Licensing Portfolio
 
Northern Territory Licensing Commission 
Racing Commission 
 Tourism Portfolio
 
Northern Territory Tourist Commission  
Treasury Portfolio
 
Northern Territory Treasury Utilities Commission of the Northern Territory  WT/REG184/1 
Page 150  
 
1. For the entities listed for the Northern Territo ry, this Chapter does not cover set-asides on 
behalf of the Charles Darwin University pursuant to Partnership Agreements between the Northern 
Territory Government and Charles Darwin University.  
2. Australia shall phase-out the non-compliant parts of its Building Northern Territory Industry 
Participation  program within three years after the date of entry into force of this Agreement. 
Queensland
 
 
Aboriginal and Torres Strait Islander Policy Portfolio  
Department of Aboriginal a nd Torres Strait Islander Policy 
 
Attorney-General and Justice Portfolio  
Department of Justice and Attorney-General Public Trustee of Queensland  Child Safety Portfolio
 
Department of Child Safety 
 Communities and Disability Services Portfolio
 
Department of Communities and Disability Services Queensland  Deputy Premier, Treasurer and Sport Portfolio
 
Treasury Department 
Government Superannuation Office Motor Accident Insurance Commission Nominal Defendant Office of Economical and Statistical Research 
Office of State Revenue 
Queensland Office of Gaming and Regulation  Emergency Services Portfolio
 
Department of Emergency Services Queensland Ambulance Service 
Queensland Fire Service 
 Environment Portfolio
 
Environmental Protection Agency Queensland Parks and Wildlife Service 
 
Local Government, Planning and Women Portfolio
 
Department of Local Government , Planning, Sport and Recreation 
Sport and Recreation Queensland Office for Women  
Natural Resources, Mines and Energy Portfolio
 
Department of Natural Resources, Mines and Energy  Police and Corrective Services Portfolio
 
Queensland Police Service 
Department of Corrective Services 
 Premier and Trade Portfolio
 
Department of the Premier and Cabinet  WT/REG184/1 
 Page 151 
 
 
Office of the Queensland Parliamentary Counsel Office of Public Sector Merit and Equity  Primary Industries Portfolio
 
Department of Primary Industries and Fisheries 
DPI Forestry 
 Public Works, Housing and Racing Portfolio
 
Department of Public Works Department of Housing 
 
State Development and Innovation Portfolio
 
Department of State Development and Innovation  Tourism, Fair Trading and Wine Industry Development
 
Department of Tourism, Fair Trad ing and Wine Industry Development 
Office of Fair Trading  Transport and Main Roads Portfolio
 
Department of Transport Department of Main Roads 
 
1. For the entities listed for Queensland, this Chapte r does not apply to procurements by covered 
entities on behalf of non-covered entities. 
2. The procurement policies and procedures that are not compliant with the offsets provisions of 
this Chapter will be made compliant within three years from the date of entry into force of the 
Agreement. 
3. For the entities listed for Queensland, this Chap ter does not cover the procurement of health 
and welfare services, education services, gove rnment advertising and motor vehicles. 
South Australia
 
 
Department of the Premier and Cabinet  
Arts SA 
 Department of Treasury and Finance
 
Independent Gambling Authority  
Department of Trade and Economic Development
 
 Department of Primary Industries and Resources SA
 
 Department of Justice
 
Attorney-General’s Department 
Department for Correctional Services 
Country Fire Services Courts Administration Authority Emergency Services Administrative Unit South Australian Metropolitan Fire Services 
South Australian Police Department 
State Electoral Office Auditor-General’s Department WT/REG184/1 
Page 152  
 
Department of Human Services
 
 Department of Aboriginal Affairs and Reconciliation
 
 Department of Education and Children's Services
 
 
Department of Further Education Employment, Science & Technology  
 SA Tourism Commission
 
 
Department for Environment and Heritage  
 Environment Protection Authority
 
 Department of Water, Land and Biodiversity Conservation
 
 
Department of Transport and Urban Planning  
Transport Services Transport Planning Office of Public Transport Board Planning SA 
Office for Sustainable Social, Environmental and Economic Development 
Office of Local Government  Department for Administrative and Information Services
 
 
State Supply Board  
 1. For the entities listed for South Australia, this  Chapter does not cover the procurement of 
health and welfare services, education services, advertising services, or motor vehicles. 
2. Any measure providing for inclusion of offset s in procurements will be phased out within 
three years of the date of entr y into force of the Agreement. 
Tasmania
 
 
Department of Education Department of Health and Human Services Department of Infrastructure, Energy and Resources 
Department of Justice 
Department of Police and Public Safety Department of Premier and Cabinet Department of Primary Industries, Water and Environment Department of Economic Development Department of Tourism, Park s, Heritage and the Arts 
Department of Treasury and Finance 
House of Assembly Legislative Council Legislature-General Office of the Governor 
Tasmanian Audit Office 
  For the entities listed for Tasmania, this Chapte r does not cover the procurement of health and 
welfare services, education services, or advertising services.  WT/REG184/1 
 Page 153 
 
 
 
Victoria  
 
Departments  
Department of Education and Training 
Department of Innovation Indus try and Regional Development 
Department of Human Services Department of Infrastructure Department of Justice Department of Premier and Cabinet 
Department of Primary Industries 
Department of Sustainability and Environment Department of Treasury and Finance Department of Victorian Communities  
Administrative Offices
 
Victorian Auditor-General’s Office Office of Public Prosecutions Office of the Chief Commissioner of Police Office of the Ombudsman Office of the Commissioner for Public Employment 
Essential Services Commission 
Office of the Legal Ombudsman Victorian Electoral Commission Office of the Privacy Commissioner  
1. For the entities listed for Victoria, this Chap ter does not cover the procurement of motor 
vehicles. 
2. Australia shall phase-out the non-compliant parts of its Victorian Industry Participation Policy 
within three years after the date of entry into force of this Agreement. 
3. For the entities listed for Victoria, this Chapte r does not apply to procurements by covered 
entities on behalf of non-covered entities. 
Western Australia
 
 
Agriculture; Forestry and Fisheries; The Mi dwest, Wheatbelt, and Great Southern Portfolio  
Department of Agriculture Rural Business Development Corporation of Western Australia 
Department of Fisheries 
Mid West Development Commission Wheatbelt Development Commission Great Southern Development Commission  Attorney General; Health; Electoral Affairs Portfolio
 
Office of the Director of Public Prosecutions 
Office of the Information Commissioner Law Reform Commission of Western Australia Equal Opportunity Commission Department of Health 
Western Australian Electoral Commission 
 WT/REG184/1 
Page 154  
 
Community Development, Women's Interests, Seni ors and Youth; Disability Services; Culture and 
the Arts Portfolio  
Department for Community Development Disability Services Commission Department of Culture and the Arts 
 
Consumer and Employment Protecti on; Indigenous Affairs Portfolio
 
Department of Consumer and Employment Protection Department of Indigenous Affairs Department of the Registrar, Western Au stralian Industrial Relations Commission 
 
Education and Training Portfolio
 
Department of Education and Training Country High Schools Hostels Authority Curriculum Council of Western Australia 
Department of Education Services 
 Environment Portfolio
 
Department of Conserva tion and Land Management 
Botanic Gardens and Parks Authority Department of Environment 
Office of Water Policy 
Swan River Trust Water and Rivers Commission Zoological Gardens Board  
Housing and Works; Racing and Gaming; Govern ment Enterprises; Land Information Portfolio
 
Department of Housing and Works State Supply Commission of Western Australia Department of Racing, Gaming and Liquor  Local Government and Regional Development; Her itage; the Kimberley, Pilbara and Gascoyne; 
 
Goldfields-Esperance Portfolio  
Department of Local Governme nt and Regional Development 
Heritage Council of WA National Trust of Australia (WA) Kimberley Development Commission 
Pilbara Development Commission 
Gascoyne Development Commission Goldfields Esperance Development Commission  Planning and Infrastructure Portfolio
 
Department for Planning and Infrastructure 
Main Roads Western Australia 
Western Australian Planning Commission Public Transport Authority Department of Land Information  
Police and Emergency Services; Jus tice; Community Safety Portfolio
 
Fire and Emergency Services Authority of Western Australia Department of Justice Office of the Inspector of Custodial Services Western Australia Police Service 
  WT/REG184/1 
 Page 155 
 
 
Premier; Public Sector Management; Federal Affair s; Science; Citizenship and Multicultural Interests 
Portfolio  
Department of the Premier and Cabinet Governor’s Establishment Office of the Public Sector Standards Commission 
Salaries and Allowances Tribunal 
 State Development Portfolio
 
Department of Industry and Resources Minerals and Energy Research Institute of Western Australia 
 
Tourism; Small Business; Sport and Recrea tion; Peel and the South West Portfolio
 
Western Australian Tourism Commission Small Business Development Corporation Rottnest Island Authority 
Recreation Camps and Reserves Board 
Department of Sport and Recreation Western Australian Sports Centre Trust Peel Development Commission South West Development Commission  
Treasury; Energy Portfolio
 
Department of Treasury and Finance Office of Energy Perth International Centre for Application of Solar Energy  
Parliament
 
Legislative Assembly Legislative Council Office of the Auditor General Office of the Parliamentary Commissioner for Administrative Investigations Corruption and Crime Commission 
Parliamentary Services Department 
 
Schedule of the United States
 
 
 This Chapter covers procurement only by  those entities listed in this Schedule. 
 
Arkansas  
Executive branch agencies,  including universities 
  For the entities listed for Arkansas, this Chap ter does not cover procurement by the Office of 
Fish and Game or construction services. 
 
California
 
Executive branch agencies 
 
Colorado  
Executive branch agencies 
 
Connecticut  
Department of Administrative Services 
Connecticut Department of Transportation 
Connecticut Department of Public Works WT/REG184/1 
Page 156  
 
Constituent Units of Higher Education  
Delaware*
 
Administrative Services (Central Procurement Agency) 
State Universities 
State Colleges 
 
Florida*  
Executive branch agencies 
 Georgia
 
Department of Administrative Services 
Georgia Technology Authority   For the entities listed for Georgia, this Chap ter does not cover the procurement of beef, 
compost, or mulch. 
 
Hawaii
 
Department of Accounting and General Services 
  For the entities listed for Hawaii, this Chap ter does not cover procurement of software 
developed in the state or construction services. 
 
Idaho
 
Central Procurement Agency (including all colle ges and universities subject to central purchasing 
oversight) 
 
Kansas  
Executive branch agencies 
  For the entities listed for Kansas, this Chapter does not cover the procur ement of construction 
services, automobiles, or aircraft. 
 
Kentucky
 
Division of Purchases, Finance and Administration Cabinet 
  For the entity listed for Kentucky, this Chap ter does not cover procurement for construction 
projects. 
 
Louisiana
 
Executive branch agencies 
 
Maine*  
Department of Administrative and Financial Services 
Bureau of General Services (covering state government agencies and school construction) 
Maine Department of Transportation  
Maryland*
 
Office of the Treasury 
Department of the Environment Department of General Services Department of Housing and Community Development Department of Human Resources 
Department of Licensing and Regulation  WT/REG184/1 
 Page 157 
 
 
Department of Natural Resources Department of Personnel Department of Public Safety and Correctional Services Department of Transportation  Mississippi
 
Department of Finance and Administration 
  For the entities listed for Mississippi, this Chap ter does not cover the procurement of services. 
 Nebraska
 
Central Procurement Agency 
 
New Hampshire*  
Central Procurement Agency  
New York*
 
State agencies 
State university system Public authorities and public benefit corporations  
1. For the entities listed for New York, this Chap ter does not cover public authorities and public 
benefit corporations with multi-state mandates. 
2. For the entities listed for New York, this Chapte r does not cover the procurement of transit 
cars, buses, or related equipment. 
Oregon
 
Department of Administrative Services 
 
Pennsylvania*  
Executive branch agencies, including: 
Governor's Office Department of the Auditor General 
Treasury Department 
Department of Agriculture Department of Banking Pennsylvania Securities Commission Department of Health 
Department of Transportation 
Insurance Department Department of Aging Department of Correction Department of Labor and Industry Department of Military Affairs 
Office of Attorney General 
Department of General Services Department of Education Public Utility Commission Department of Revenue 
Department of State 
Pennsylvania State Police Department of Public Welfare Fish Commission WT/REG184/1 
Page 158  
 
Game Commission Department of Commerce Board of Probation and Parole Liquor Control Board Milk Marketing Board 
Lieutenant Governor's Office 
Department of Community Affairs Pennsylvania Historical and Museum Commission Pennsylvania Emergency Management Agency State Civil Service Commission 
Pennsylvania Public Television Network 
Department of Environmental Resources State Tax Equalization Board Department of Public Welfare State Employees' Retirement System 
Pennsylvania Municipal Retirement Board 
Public School Employees' Retirement System Pennsylvania Crime Commission Executive Offices  
Rhode Island
 
Executive branch agencies 
  For the entities listed for Rhode Island, this Ch apter does not cover the procurement of boats, 
automobiles, buses, or related equipment.  South Dakota
 
Central Procuring Agency (including  universities and penal institutions) 
  For the entities listed for South Dakota, this Chapter does not cover procurement of beef. 
 
Texas
 
Texas Building and Procurement Commission 
  For the entity listed for Texas, this Chapter does not apply to preferences for: (1) motor 
vehicles; (2) travel agents located in Texas; or  (3) rubberized asphalt paving made from scrap tires by 
a Texas facility.  Utah
 
Executive branch agencies 
 
Vermont  
Executive branch agencies  
Washington
 
Washington State executive branch agencies, including: 
General Administration Department of Transportation 
State Universities 
  For the entities listed for Washington, this Ch apter does not cover the procurement of fuel, 
paper products, boats, ships, or vessels.    WT/REG184/1 
 Page 159 
 
 
Wyoming*  
Procurement Services Division 
Wyoming Department of Transportation University of Wyoming  Notes to the Schedule of the United States 
 
1. For the United States regional entities marked by an asterisk (*), indicating pre-existing 
restrictions, this Chapter does not cover procur ement of construction-grade steel (including 
requirements on subcontracts), motor vehicles, or coal. 
2. For the United States regional entities, this Chapter does not apply to preferences or 
restrictions associated with programs promoting the development of distressed areas or businesses owned by minorities, disabled veterans, or women. 
3. Nothing in this Annex shall be construed to prevent any state entity from applying restrictions 
that promote the general environmental quality in that state, as long as such restrictions are not 
disguised barriers to international trade. 
4. This Chapter does not cover any procurement made by a covered entity on behalf of 
noncovered entities at a different level of government. 
5. For the United States regional entities, this Chapte r does not apply to restrictions attached to 
Federal funds for mass transit and highway projects. 
6. For the United States regional entities, this Chapter does not cover the procurement of 
printing services. 
Section 3: Government Enterprises
 
 
1. This Chapter applies to the government enterp rises listed in each Party’s Schedule to this 
Section where the value of the procurement is estim ated, in accordance with Article 15.1.6 and 15.1.7, 
to equal or exceed:  
(a) for procurement of goods and services: 
(i) of List A entities, A$409,000 or US$292,751; or 
(ii) of List B entities, US$538,000 ; and 
(b) for procurement of construction services for List A and List B entities: A$9,396,000 
or US$6,725,000. 
 The monetary thresholds set out  in sub-paragraphs (a) and (b) shall be adjusted in accordance 
with  Section 8 of this Annex. 
 
Schedule of Australia1,2 
 
List A:  
 
1.  Aged Care Standards a nd Accreditation Agency Ltd. 
2.  Australian Accounting Standards Board 3.  Australian Broadcasting Authority 4.  Australian Communications Authority WT/REG184/1 
Page 160  
 
5.  Australian Fisheries Management Authority 6.  Australian Institute of Criminology 7.  Australian Institute of Health and Welfare 8.  Australian Institute of Marine Science 9.  Australian Law Reform Commission 
10. Australian Maritime Safety Authority 
11.  Australian National Maritime Museum 12.  Australian Nuclear Science and Technology Organization 13.  Australian Pesticides and Veterinary Medicines Authority 14.  Australian Prudential Regulation Authority 
15.  Australian Securities and Investments Commission 
16.  Tourism Australia 17.  Australian Trade Commission (Austrade) 18.  Australian War Memorial3 19.  Comcare 
20.  Commonwealth Scientific and Industrial Research Organisation 
21.  Corporations and Markets Advisory Committee 22.  Export Finance and Insurance Corporation 23.  Grains Research and Development Corporation 24.  Great Barrier Reef Marine Park Authority 25.  Health Insurance Commission 
26.  Land and Water Resources Rese arch and Development Corporation 
27.  National Gallery of Australia 28.  National Museum of Australia 29.  National Occupational H ealth and Safety Commission 
30.  Reserve Bank of Australia 
31.  Sydney Harbour Federation Trust 
32.  The Director of National Parks 33.  The National Institute of Clinical Studies Ltd.  
Notes to the Schedule of Australia 
 1. For the entities listed in Australia’s list A, this Chapter covers only those entities listed in this 
Schedule. 
2. For the entities listed in Australia’s list A, th is Chapter does not cover the procurement of 
motor vehicles. 
3. This Chapter does not cover procurement of  telecommunications services by the Australian 
War Memorial. 
Schedule of the United States
 
 
List A:  
 
1.  Tennessee Valley Authority 
2.  Bonneville Power Administration 
3.  Western Area Power Administration 4. Southeastern Power Administration 5.  Southwestern Power Administration 6.  St. Lawrence Seaway Development Corporation 
 
   WT/REG184/1 
 Page 161 
 
 
List B:  
 
Rural Utilities Service1 
 
Notes to the Schedule of the United States 
 
1. The Rural Utilities Service shall:  
(a) waive federal buy national requirements imposed as conditions of funding for all 
power generation projects; and 
(b) apply procurement procedures equivalent to the procedures in the WTO Agreement 
on Government Procurement and national tr eatment to funded projects exceeding the 
thresholds specified above. 
1. For greater clarity, this Chapter does not apply to any other aspect of procurement by the 
Rural Utilities Service, including any restrictions the Rural Utilities Service places on financing for 
telecommunications projects. 
2. With respect to procurement by entities listed in this Section, this Chapter does not apply to 
restrictions attached to Federal funds for airport projects. 
Section 4 : Goods
 
 
 This Chapter applies to all goods procured by the entities listed in Sections 1 through 3, 
unless otherwise specified in this Chapter, including this Annex. 
 
Section 5 : Services  
 
 This Chapter applies to all services procured by  the entities listed in Sections 1 through 3,  
unless otherwise specified in this Chapter, including this Annex. 
 
Schedule of Australia  
 
 This Chapter does not cover the procurement of plasma fractionation services or government 
advertising services. 
 
Schedule of the United States  
 
 This Chapter does not cover the procurement of the following services, as elaborated in the 
Common Classification System and the WTO system of classification – MTN.GNS/W/120. 
(For complete listing of Common Classification System, see : 
http://www.tcc.mac.doc.gov/cgibin/doit. cgi?204:66:601961876: 49#An1001.1b-2-B.) 
 
Basic telecommunications network and services  listed in paragraph 2C(a) through (g) of 
WTO document MTN.GNS/W/120, such as public voice and data services. This exclusion 
does not include information services, as define d in 47 United States Code (USC) 153(20). 
See http://www.gpoaccess.gov/uscode/search.html.  
 J.  Maintenance, Repair, Modification, Rebuilding and Installation of Goods/ Equipment 
  J019  Maintenance, Repair, Modification, Re building and Installation of Equipment Related 
to Ships 
 J998  Non-nuclear Ship Repair WT/REG184/1 
Page 162  
 
 M.  Operation of Government-Owned Facilities: 
All facilities operated by the Department of Defe nse, Department of Energy, and the National 
Aeronautics and Space Administration; and for all entities in Section 1 through Section 3: 
M180 Research and Development facilities 
 
S.  Utilities : All Classes 
 V.  Transportation, Travel and Relocation Services:  All Classes except V503 Travel Agent 
Services 
 
Note to the Schedule of the United States 
 
1. This Chapter does not cover the procurement of any service in support of military forces 
overseas. 
Section 6: Construction Services
 
 
 This Chapter applies to all construction servic es procured by the entities listed in Sections 1 
through 3, unless otherwise specified in this Chapter, including this Annex. 
 
Schedule of the United States  
  
 This Chapter does not cover the procurement of dredging services.  
Note to Section 6 
 1. Buy national requirements on articles, supplies, or materials acquired for use in construction 
services contracts covered by this Chapter sh all not apply to goods of either Party. 
Section 7: General Notes
 
 
 Unless otherwise specified herein, the follo wing General Notes in each Party’s Schedule 
apply without exception to this Chapter, in cluding to all sections of this Annex. 
 
Schedule of Australia  
 
 This Chapter does not apply to:  
(a) any form of preference to benefit small and medium enterprises; 
(b) measures to protect national treasures of artistic, historic, or archaeological value; 
(c) measures for the health and welfare of indigenous people; and 
(d) measures for the economic and social advancement of indigenous people. 
Schedule of the United States
 
 1. This Chapter does not apply to set asides on be half of small or minority businesses. Setasides 
include any form of preference, such as the exclus ive right to provide a good or service and price 
preferences.  WT/REG184/1 
 Page 163 
 
 
2. Where a contract is to be awarded by an entity that is not listed in Section 1, 2 or 3, this 
Chapter shall not be construed as covering any good or service component of that contract.  
3. This Chapter does not apply to the procurement of  transportation services that form a part of, 
or are incidental to, a procurement contract. 
Section 8: Threshold Adjustment Formula  
 
1. The thresholds in Sections 1 through 3 shall be  adjusted at two-year intervals with each 
adjustment taking effect in January, beginning on January 1, 2006. 
2. With regard to thresholds for goods and ser vices in Section 1 and for goods and services for 
List A entities referred to in Section 3, the U.S. dollar value for each threshold shall be calculated 
every two years, based on the U.S. inflation rate measured by the Producer Price Index for Finished 
Goods published by the U.S. Bureau of Labor Statis tics, using the two-year time that ends on October 
31 in the year prior to the adjustment taking effect, and using the following formula: 
T1 = T 0 x (1+ i) 
 
  T 0 = threshold value at base period 
  i = accumulated U.S. inflation rate for the “i”th two year-period 
  T 1 = new threshold value; and 
 3. The thresholds for goods and services in Section 2, for goods and services for List B entities 
in Section 3, and for construction services in Sections  1 through 3 are conversions into U.S. dollars of 
the thresholds listed in the U.S. Appendix 1 to  the WTO Agreement on Government Procurement, 
which are set out in Special Drawing Rights (SDRs) and listed below. Adjustments of these thresholds shall be calculated, based on an average of the da ily conversion rates of the U.S. dollar in terms of 
SDRs published by the IMF in its monthly "Internati onal Financial Statistics", for the two-year period 
preceding October 1 or November 1 of the year befo re the adjusted thresholds are to take effect: 
(a) 5 million SDRs for construction services; 
(b) 355,000 SDRs for goods and servi ces for Section 2 entities; and 
(c) 400,000 SDRs for goods and services for Section 3 List B entities. 
4. The U.S. dollar value of the adjusted thresholds  shall be converted into the Australian dollar 
based on the official conversion rate of the Reserve  Bank of Australia, using the average of the daily 
values of the Australian dollar in terms of the U.S.  dollar over the two-year period ending September 
30 in the year prior to the adjustments taking eff ect, and rounded to the nearest thousand Australian 
dollars; 
5. Each Party shall notify the other Party of th e adjusted thresholds in their respective 
currencies; and 
6. The Parties shall consult if a major change in  a national currency vis-à-vis the other currency 
were to create a significant problem with regard to the application of the Chapter.  
 WT/REG184/1 
Page 164  
 
CHAPTER SIXTEEN: ELECTRONIC COMMERCE 
 
Article 16.1 
 
General
 
 
 The Parties recognise the economic growth and opportunity that electronic commerce provides, the importance of avoiding barriers to its use and development, and the applicability of the 
WTO Agreement to measures affecting electronic commerce.  
Article 16.2 
 
Electronic Supply Of Services
 
  For greater certainty, the Parties affirm th at measures affecting the supply of a service 
delivered or performed electronically are subject to the obligations contained in the relevant 
provisions of Chapters Ten (Cross-Border Trade in  Services), Eleven (Investment), and Thirteen 
(Financial Services), subject to any exceptions applicable to such obligations and to the non-
conforming measures described in Articles 10.6 (Non-Conforming Measures), 11.13 (Non-
Conforming Measures), or 13.9 (Non-Conforming Measures).  
Article 16.3 
 
Customs Duties
 
  Neither Party may impose customs duties, fees, or other charges
16-1 on or in connection with 
the importation or exportation of digital products, re gardless of whether they are fixed on a carrier  
medium or transmitted electronically.  
Article 16.4 
 
Non-Discriminatory Treatment Of Digital Products
 
 
1. Neither Party may accord less favourable treatment  to some digital products than it accords to 
other like digital products: 
(a) on the basis that the digital products receiving less favourable treatment are created, 
produced, published, stored, transmitted, cont racted for, commissioned, or first made 
available on commercial terms outside its territory; 
(b) on the basis that the author, performer, producer, developer, or distributor of such 
digital products is a person of the other Party or a non-Party; or 
(c) so as to otherwise afford protection to ot her like digital products that are created, 
produced, published, stored, transmitted, cont racted for, commissioned, or first made 
available on commercial terms in its territory. 
2. Neither Party may accord less favourable treatment to digital products:16-2 
                                                      
16-1 For greater clarity, Article 16.3 does not preclude a Party from imposing internal taxes or other 
internal charges on digital products, provided that such taxes or charges are imposed in a manner consistent with 
this Agreement.  WT/REG184/1 
 Page 165 
 
 
(a) created, produced, published, stored, transmitted, contracted for, commissioned, or 
first made available on commercial terms in the territory of the other Party than it 
accords to like digital products created, pr oduced, published, stored, transmitted, 
contracted for, commissioned, or first ma de available on commercial terms in the 
territory of a non-Party, or 
(b) whose author, performer, producer, developer, or distributor is a person of the other 
Party than it accords to like digital products whose author, performer, producer, 
developer, or distributor is a person of a non-Party. 
3. Paragraphs 1 and 2 do not apply to: 
(a) non-conforming measures adopted or maintain ed in accordance with Articles 10.6, 
11.13, or 13.9; 
(b) the extent that they are inconsistent w ith Chapter Seventeen (Intellectual Property 
Rights); 
(c) subsidies or grants that a Party provides to a service or service supplier, including 
government-supported loans, guarantees, and insurance; and 
(d) services supplied in the exercise of governmental authority, as defined in Article 
1.2.22 (Definitions). 
4. For greater clarity, paragraphs 1 and 2 do not prevent a Party from adopting or maintaining 
measures, including measures in the audio-visual and broadcasting sectors, in accordance with its reservations to Chapters Ten and Eleven. 
Article 16.5 
 
Authentication And Digital Certificates
 
 1. Neither Party may adopt or maintain legisla tion for electronic authentication that would 
(a) prohibit parties to an electronic transaction from mutually determining the 
appropriate authentication methods for that transaction; or 
(b) prevent parties from having the opportunity to prove in court that their electronic 
transaction complies with any legal require ments with respect to authentication. 
2. Each Party shall work towards the recognition at  the central level of government of digital 
certificates issued by the other Party or under authorisation of that Party. 
Article 16.6 
 
Online Consumer Protection
 
  The Parties recognise the importance of mainta ining and adopting transparent and effective 
measures to protect consumers from fraudulent and deceptive commercial practices when they engage 
in electronic commerce. 
 
                                                                                                                                                                    
 
16-2 Nothing in this Article shall be construed as affecting the Parties’ rights and obligations with 
respect to each other under Article 4 of the TRIPS Agreement. WT/REG184/1 
Page 166  
 
Article 16.7 
 
Paperless Trade Administration
 
 1. Each Party shall endeavour to make all trade administration documents available to the public 
in electronic form. 
2. Each Party shall endeavour to accept trade administration documents submitted electronically 
as the legal equivalent of the paper version of such documents. 
Article 16.8 
 
Definitions
 
  For the purposes of this Chapter:  1. authentication  means the process or act of establishing th e identity of a party to an electronic 
communication or transaction or ensuring the integrity of an electronic communication; 
2. carrier medium  means any physical object capable of storing a digital product, by any 
method now known or later devel oped, and from which a digital product can be perceived, 
reproduced, or communicated, directly or indirectly, including an optical medium, floppy disk, and magnetic tape; 
3. digital certificate  means an electronic document or file that is issued or otherwise linked to a 
party to an electronic communication or transaction for the purpose of establishing the party’s 
identity, authority, or other attribute; 
4. digital products  means the digitally encoded form of  computer programs, text, video, 
images, sound recordings, and other products,
16-3 regardless of whether they are fixed on a carrier 
medium or transmitted electronically;16-4 
5. electronic transmission or transmitted electronically  means the transfer of digital products 
using any electromagnetic or photonic means; and 
6. trade administration documents  means forms that a Party issues or controls that must be 
completed by or for an importer or exporter in connection with the import or export of goods.  
 
                                                      
16-3 For greater clarity, digital products can be a co mponent of a good, be used in the supply of a 
service, or exist separately, but do not include digitized representations of financial instruments that are settled 
or transmitted through central bank-sponsored payment or settlement system. 
16-4 The definition of digital products should not be understood to reflect a Party’s view on whether 
trade in digital products through electronic transmission sh ould be categorized as trad e in services or trade in 
goods.  WT/REG184/1 
 Page 167 
 
 
CHAPTER SEVENTEEN: INTELLECTUAL PROPERTY RIGHTS 
 
Article 17.1 
 
General Provisions  
 
1. Each Party shall, at a minimum, give effect to this Chapter. A Party may provide more 
extensive protection for, and enforcement of, inte llectual property rights under its law than this 
Chapter requires, provided that the additional protectio n and enforcement is not inconsistent with this 
Agreement. 
International Agreements 
 
2. Each Party affirms that it has ratified or acceded  to the following agreements, as revised and 
amended: 
(a) the Patent Cooperation Treaty  (1970); 
(b) the Convention Relating to the Distribution of Programme-Carrying Signals 
Transmitted by Satellite  (1974); 
(c) the Protocol Relating to the Madrid Ag reement Concerning the International 
Registration of Marks  (1989); 
(d) the Budapest Treaty on the International Recognition of the Deposit of 
Microorganisms for the Purposes of Patent Procedure  (1980); 
(e) the International Convention for the Protection of New Varieties of Plants  (1991); 
(f) the Trademark Law Treaty  (1994); 
(g) the Paris Convention for the Protection of Industrial Property  (1967) (the Paris 
Convention); and 
(h) the Berne Convention for the Protection of Literary and Artistic Works  (1971) (the 
Berne Convention). 
3. Further to Article 1.1.2 (General), the Parties affirm their rights and obligations with respect 
to each other under the TRIPS Agreement. 
4. Each Party shall ratify or accede to the WIPO Copyright Treaty (1996) and the WIPO 
Performances and Phonograms Treaty  (1996) by the date of entry into force of this Agreement, 
subject to the fulfilment of thei r necessary internal requirements. 
5. Each Party shall make its best efforts to comply  with the provisions of the Geneva Act of the 
Hague Agreement Concerning the Interna tional Registration of Industrial Designs  (1999), and the 
Patent Law Treaty  (2000), subject to the enactment of laws necessary to apply those provisions in its 
territory. WT/REG184/1 
Page 168  
 
National Treatment 
 
6. In respect of all categories of intellectual prope rty covered in this Chapter, each Party shall 
accord to nationals
17-1 of the other Party treatment no less favourable than it accords to its own 
nationals with regard to the protection17-2 and enjoyment of such intellectual property rights and any 
benefits derived from such rights. With resp ect to secondary uses of phonograms by means of 
analogue communications and free ove r-the-air radio broadcasting, however, a Party may limit the 
rights of the performers and producers of the other Pa rty to the rights its persons are accorded in the 
territory of the other Party. 
7. A Party may derogate from paragraph 6 in re lation to its judicial and administrative 
procedures, including requiring a national of the ot her Party to designate an address for service of 
process in its territory, or to appoint an agent in  its territory, provided that such derogation is: 
(a) necessary to secure compliance with laws and regulations that are not inconsistent 
with this Chapter; and 
(b) not applied in a manner that would const itute a disguised restriction on trade. 
8. Paragraph 6 does not apply to procedures pr ovided in multilateral agreements concluded 
under the auspices of World Intellectual Property Or ganization (WIPO) in relation to the acquisition 
or maintenance of intellectual property rights. 
Application of Agreement to Existing Subject Matter 
 
9. Except as it provides otherwise, including Article 17.4.5, this Chapter gives rise to obligations 
in respect of all subject matter existing at the date of entry into force of this Agreement, that is 
protected on that date in the territory of the Party where protection is claimed, or that meets or comes 
subsequently to meet the criteria for protection under this Chapter. 
10. Except as otherwise provided in this Chapter, including Article 17.4.5, a Party shall not be 
required to restore protection to subject matter that on  the date of entry into force of this Agreement 
has fallen into the public domain in the territory  of the Party where the protection is claimed. 
Application of Agreement to Prior Acts 
 
11. This Chapter does not give rise to obligations in  respect of acts that occurred before the date 
of entry into force of this Agreement. 
Transparency 
 
12. Further to Article 20.2 (Publication), and w ith the object of making its protection and 
enforcement of intellectual property rights as transp arent as possible, each Part y shall ensure that all 
laws, regulations, and procedures concerning the pr otection or enforcement of intellectual property 
                                                      
17-1 For the purposes of Articles 17.1.6, 17.1.7, 17.2.12(b), and 17.6.1, a national of a Party  also 
means, in respect of the relevant right, an entity of that Party that would meet the criteria for eligibility for 
protection provided for in the agreements listed in Articles 17.1.2 and 17.1.4, and the TRIPS Agreement  
17-2 For the purposes of this paragraph, protection  includes matters affecting the availability, 
acquisition, scope, maintenance, and enforcement of in tellectual property rights, as well as those matters 
affecting the use of intellectual property rights specifically  covered by this Chapter. Further, for the purposes of 
this paragraph, protection also includes the prohibition on circumvention of effective technological measures 
specified in Article 17.4.7 and the rights and obligations concerning rights management information specified in 
Article 17.4.8.   WT/REG184/1 
 Page 169 
 
 
rights shall be in writing and shall be published,17-3 or where such publication is not practicable, made 
publicly available, in a national language in such a manner as to enable governments and right holders 
to become acquainted with them.  
Article 17.2 
 
Trademarks, Including Geographical Indications  
 1. Each Party shall provide that marks
17-4 shall include marks in respect of goods and services, 
collective marks, and certification marks. Each Party shall also provide that geographical indications are eligible for protection as marks.
17-5 
2. Neither Party may require, as a condition of regist ration, that marks be visually perceptible, 
nor may a Party deny registration of a mark solely on the ground that the sign of which it is composed 
is a sound or a scent.17-6 
3. Each Party shall ensure that its measures ma ndating the use of the term customary in common 
language as the common name for a good or service (“common name”) including, inter alia , 
requirements concerning the relative size, placement, or style of use of the mark in relation to the 
common name, do not impair the use or effectiveness of marks used in relation to such goods or 
services. 
4. Each Party shall provide that the owner of a regi stered mark shall have the exclusive right to 
prevent all third parties not having the owner’s cons ent from using in the course of trade identical or 
similar signs, including geographical indications, fo r goods or services that are related to those goods 
or services in respect of which the owner’s mark is registered, where such use would result in a 
likelihood of confusion. In case of the use of an id entical sign, including a ge ographical indication, for 
identical goods or services, a likelihood of confusion shall be presumed. 
5. Each Party may provide limited exceptions to the rights conferred by a mark, such as fair use 
of descriptive terms, provided that such exceptions ta ke account of the legitimate interest of the owner 
of the mark and of third parties. 
6. Article 6 bis of the Paris Convention  shall apply, mutatis mutandis , to goods or services that 
are not identical or similar to those identified by a well-known mark,17-7 whether registered or not, 
provided that use of that mark in relation to those goods or services would indicate a connection between those goods or services and the owner of th e mark, and provided that the interests of the 
owner of the mark are likely to be damaged by such use. 
7. Recognising the importance of registration systems for marks that provide rights of 
presumptive validity, through the conduct of examina tion as to substance as well as to formalities, and 
                                                     
 
17-3 A Party may satisfy the requirement for publication by making the law, regulation, or procedure 
available to the public on the Internet. 
17-4 For the purposes of this Article, in respect of the law of Australia, marks  means “trademarks”. 
17-5 A geographical indication shall be capable of constituting a mark to the extent that the geographical 
indication consists of any sign, or any combination of signs (such as words, including geographic and personal 
names, as well as letters, numerals, figurative elemen ts and colours, including single colours), capable of 
identifying a good as originating in the territory of a Part y, or a region or locality in that territory, where a given 
quality, reputation, or other characteristic of the good is essentially attributable to its geographical origin. For 
the purposes of this Chapter, originating  does not have the meaning ascribed to that term in Article 1.2 (General 
Definitions). 
17-6 A Party may require an adequate description, which can be represented graphically, of the mark. 
17-7 In determining whether a mark is well known, the reputation of the mark need not extend beyond 
the sector of the public that normally deals with the relevant goods or services. WT/REG184/1 
Page 170  
 
through opposition and cancellation pr ocedures, each Party shall provide a system for the registration 
of marks, which shall include: 
(a) providing to the applicant a communication in writing, which may be electronic, of 
the reasons for any refusal to register a mark; 
(b) an opportunity for the applicant to resp ond to communications from the authorities 
responsible for registration of marks, to contest an initial refusal, and to appeal 
judicially any final refusal to register; 
(c) an opportunity for interested parties to oppose the registration of a mark or to seek 
cancellation of a mark after it has been registered; and 
(d) a requirement that decisions in oppositi on or cancellation proceedings be reasoned 
and in writing. 
8. Each Party shall provide: 
(a) a system for the electronic application, processing, registration, and maintenance of 
marks; and 
(b) a publicly available electronic database, incl uding an on-line database, of applications 
for marks and registrations. 
9. Each Party shall provide that initial registrati on and each renewal of re gistration of a mark 
shall be for a term of no less than ten years. 
10. Neither Party may require recordal of licences for marks. 
11. Each Party shall endeavour to reduce differen ces in law and practice between the Parties’ 
respective systems for the protection of marks, includ ing differences that affect the cost to users. In 
addition, each Party shall endeavour to participate in international trademark harmonization efforts, 
including the WIPO fora dealing with reform and development of the international trademark system. 
12. (a) Each Party shall provide a system that permits owners to assert rights in marks, and 
interested parties to challenge rights in marks, through administrative or judicial 
means, or both. 
(b) Consistent with sub-paragraph (a), wher e a Party provides the means to apply for 
protection or petition for recognition of ge ographical indications, through a system 
for the protection of marks or otherwise, it shall accept such applications and petitions without the requirement for interces sion by a Party on beha lf of its nationals, 
and shall: 
(i) process applications or petitions, as re levant, for geographical indications 
with a minimum of formalities; 
(ii) make its regulations governing filing of such applications or petitions, as 
relevant, readily available to the public;  
(iii) ensure that applications or petitions, as relevant, for geographical indications 
are published for opposition, and provide procedures for opposing 
geographical indications that are the subj ect of applications or petitions. Each  WT/REG184/1 
 Page 171 
 
 
Party shall also provide procedures to cancel any registration resulting from an application or a petition; 
(iv) ensure that measures governing the fili ng of applications or petitions, as 
relevant, for geographical indications set out clearly the procedures for these actions. These procedures shall includ e contact information sufficient for 
applicants or petitioners, as relevant, to obtain specific procedural guidance 
regarding the processing of those applications or petitions; and 
(v) provide that grounds for refusing an a pplication for protection or recognition 
of a geographical indication include the following:  
(A) the geographical indication is likely to cause confusion with a mark 
that is the subject of a good-faith pending application or registration; 
and 
 (B) the geographical indication is likely to cause confusion with a pre-
existing mark, the rights to which have been acquired through use in 
good faith in the territory of the Party. 
 
Article 17.3 
 
Domain Names On The Internet
 
 
1. In order to address trademark cyber-piracy, each Party shall require that the management of 
its country-code top-level domain (ccTLD) provide an appropriate procedure for the settlement of 
disputes, based on the principles established in  the Uniform Domain-Name Dispute-Resolution 
Policy. 
2. Each Party shall require that the management of its ccTLD provide online public access to a 
reliable and accurate database of contact in formation for domain-name registrants. 
Article 17.4 
 
Copyright  
 1. Each Party shall provide
17-8 that the following have the right to authorise or prohibit17-9 all 
reproductions, in any manner or form, permanent or temporary (including temporary storage in 
material form): 
(a) authors, in respect of their works; 
(b) performers, in respect of their performances;17-10 and 
(c) producers of phonograms, in respect of their phonograms.17-11 
                                                      
17-8 The Parties reaffirm that it is a matter for each Party’s law to prescribe th at works and phonograms 
shall not be protected by copyright unless they have been fixed in some material form. 
17-9 For the purposes of Articles 17.4, 17.5, and 17.6, a right to authorise or prohibit  means an 
exclusive right. 
17-10 For the purposes of Articles 17.4, 17.5, and 17.6, a performance  refers to a performance fixed in a 
phonogram unless otherwise specified. 
17-11 References in this Chapter to authors, performers  and producers of phonograms  include any 
successors in interest. WT/REG184/1 
Page 172  
 
2. Each Party shall provide to authors, performers, and producers of phonograms the right to 
authorise or prohibit the making available to the public of the original and copies
17-12 of their works, 
performances, and phonograms through sal e or other transfer of ownership.17-13 
3. In order to ensure that no hierarchy is estab lished between rights of authors, on the one hand, 
and rights of performers and producers of phonogram s, on the other hand, each Party shall provide 
that in cases where authorisation is needed from bot h the author of a work embodied in a phonogram 
and a performer or producer owning rights in the phonogram, the need for the authorisation of the author does not cease to exist because the authorisation of the performer or producer is also required. 
Likewise, each Party shall provide that in cases where authorisation is needed from both the author of 
a work embodied in a phonogram and a performer or producer owning rights in the phonogram, the 
need for the authorisation of the performer or producer does not cease to exist because the 
authorisation of the author is also required. 
4. Each Party shall provide that, where the te rm of protection of a work (including a 
photographic work), performance, or phonogram is to be calculated: 
(a) on the basis of the life of a natural person, th e term shall be not less than the life of 
the author and 70 years after the author’s death; and 
(b) on a basis other than the life of a natural person, the term shall be: 
(i) not less than 70 years from the end of the calendar year of the first authorised 
publication of the work, performance, or phonogram; or 
(ii) failing such authorised publication with in 50 years from the creation of the 
work, performance, or phonogram, not less than 70 years from the end of the 
calendar year of the creation of the work, performance, or phonogram. 
5. Each Party shall apply Article 18 of the Be rne Convention and Article 14.6 of the TRIPS 
Agreement, mutatis mutandis , to the subject matter, rights, and obligations in this Article and Articles 
17.5 and 17.6. 
6. (a) Each Party shall provide that for copyright, any person acquiring or holding any 
economic right in a work, performance, or phonogram: 
(i) may freely and separately transfer that right by contract; and 
(ii) by virtue of a contract, including contracts of employment underlying the 
creation of works, performances, and phono grams, shall be able to exercise 
that right in that person’s own name and enjoy fully the benefits derived from 
that right. 
(b) Each Party may establish measures to give e ffect to the measures specified in Article 
14ter of the Berne Convention. 
7. (a) In order to provide adequate legal protec tion and effective legal remedies against the 
circumvention of effective technological me asures that authors, performers, and 
producers of phonograms use in connection with  the exercise of their rights and that 
                                                     
 
17-12 The expressions copies  and original and copies  subject to the right of distribution in this 
paragraph refer exclusively to fixed copies that can be put into circulation as tangible objects. 
17-13 Nothing in this Agreement shall affect a Party’ s right to determine the conditions, if any, under 
which the exhaustion of this right applies after the first sa le or other transfer of ownership of the original or a 
copy of their works, performances, or phonograms with the authorisation of the right holder.  WT/REG184/1 
 Page 173 
 
 
restrict unauthorised acts in respect of their works, performances, and phonograms, 
each Party shall provide that any person who: 
(i) knowingly, or having reasonable gr ounds to know, circumvents without 
authority any effective technological measure that controls access to a protected work, performance, or phonogram, or other subject matter; or 
(ii) manufactures, imports, distributes, offers to the public, provides, or otherwise 
traffics in devices, products, or compone nts, or offers to the public, or 
provides services that: 
   (A) are promoted, advertised, or marketed for the purpose of 
circumvention of any effective technological measure; 
 
   (B) have only a limited commercially significant purpose or use other 
than to circumvent any effective technological measure; or 
    (C) are primarily designed, produced, or performed for the purpose of 
enabling or facilitating the circumven tion of any effective technological 
measure,  
 
  shall be liable and subject to the remedi es specified in Article 17.11.13. Each Party 
shall provide for criminal procedures and pe nalties to be applied where any person is 
found to have engaged wilfully and for the purposes of commercial advantage or 
financial gain in any of the above activ ities. Each Party may provide that such 
criminal procedures and penalties do not a pply to a non-profit library, archive, 
educational institution, or public non-commercial broadcasting entity. 
 
(b) Effective technological measure  means any technology, device, or component that, 
in the normal course of its operation, controls access to a protected work, 
performance, phonogram, or other protected s ubject matter, or protects any copyright. 
(c) In implementing sub-paragraph (a), neither Pa rty shall be obligated to require that the 
design of, or the design and selection of parts and components for, a consumer electronics, telecommunications, or computing product provide for a response to any particular technological measure, so long as the product does not otherwise violate 
any measures implementing sub-paragraph (a). 
(d) Each Party shall provide that a violation of  a measure implementing this paragraph is 
a separate civil or criminal offence and independent of any infringement that might 
occur under the Party’s copyright law. 
(e) Each Party shall confine exceptions to an y measures implementi ng sub-paragraph (a) 
to the following activities, which shall be applied to relevant measures in accordance 
with sub-paragraph (f): 
(i) non-infringing reverse engineering activities with regard to a lawfully 
obtained copy of a computer program, carried out in good faith with respect to particular elements of that comput er program that have not been readily 
available to the person engaged in th ose activities, for the sole purpose of 
achieving interoperability of an independently created computer program 
with other programs; WT/REG184/1 
Page 174  
 
(ii) non-infringing good faith activities, carried out by an appropriately qualified 
researcher who has lawfully obtained a copy, unfixed performance, or display of a work, performance, or phonogram and who has made a good faith effort 
to obtain authorisation for such activities,  to the extent necessary for the sole 
purpose of identifying and analysing flaws and vulnerabilities of technologies 
for scrambling and descrambling of information; 
(iii) the inclusion of a component or part for the sole purpose of preventing the 
access of minors to inappropriate onlin e content in a technology, product, 
service, or device that itself is not prohibited under the measures implementing sub-paragraph (a)(ii); 
(iv) non-infringing good faith activities that are authorised by the owner of a 
computer, computer system, or computer network for the sole purpose of testing, investigating, or correcting the security of that computer, computer system, or computer network; 
(v) non-infringing activities for the sole purpose of identifying and disabling a 
capability to carry out undisclosed collection or dissemination of personally 
identifying information reflecting the on line activities of a natural person in a 
way that has no other effect on the ability  of any person to gain access to any 
work;  
(vi) lawfully authorised activities carried  out by government employees, agents, 
or contractors for law enforcement, in telligence, essential security, or similar 
governmental purposes; 
(vii) access by a non-profit library, archive, or  educational institution to a work, 
performance, or phonogram not otherwise available to it, for the sole purpose of making acquisition decisions; and 
(viii) non-infringing uses of a work, performance, or phonogram in a particular 
class of works, performances, or phonograms, when an actual or likely 
adverse impact on those non-infringing uses is credibly demonstrated in a legislative or administrative review or proceeding; provided that any such review or proceeding is conducted at least once every four years from the date of conclusion of such review or proceeding. 
(f) The exceptions to any measures implementi ng sub-paragraph (a) for the activities set 
forth in sub-paragraph (e) may only be applie d as follows, and only to the extent that 
they do not impair the adequacy of lega l protection or the effectiveness of legal 
remedies against the circumvention of effective technological measures:  
(i) any measures implementing sub-para graph (a)(i) may be subject to 
exceptions with respect to each activity set forth in sub-paragraph (e); 
(ii) any measures implementing sub-paragraph (a)(ii), as they apply to effective 
technological measures that control access to a work, performance, or phonogram, may be subject to exceptions with respect to activities set forth in sub-paragraph (e)(i), (ii), (iii), (iv), and (vi); and  
(iii) any measures implementing sub-paragraph (a)(ii), as they apply to effective 
technological measures that protect any copyright, may be subject to  WT/REG184/1 
 Page 175 
 
 
exceptions with respect to the activities set forth in sub-paragraph (e)(i) and 
(vi). 
8. In order to provide adequate and effective legal remedies to protect rights management 
information: 
(a) each Party shall provide that any person who without authority, and knowing, or, with 
respect to civil remedies, having reasonabl e grounds to know, that it would induce, 
enable, facilitate, or conceal an infringement of any copyright:  
(i) knowingly removes or alters any rights management information;  
(ii) distributes or imports for distribution rights management information 
knowing that the rights management info rmation has been removed or altered 
without authority; or 
(iii) distributes to the public, imports for distribution, broadcasts, communicates, 
or makes available to the public c opies of works, performances, or 
phonograms, knowing that rights manageme nt information has been removed 
or altered without authority,  
shall be liable and subject to the remedies specified in Article 17.11.13. Each Party 
shall provide for criminal procedures and pe nalties to be applied where any person is 
found to have engaged wilfully and fo r purposes of commercial advantage or 
financial gain in any of the above activ ities. Each Party may provide that these 
criminal procedures and penalties do not apply to a non-profit library, archive, educational institution, or public non-commercial broadcasting entity; 
(b) each Party shall confine exceptions to measures implementing sub-paragraph (a) to 
lawfully authorised activities carried out  by government employees, agents, or 
contractors for the purpose of law enforc ement, intelligence, essential security, or 
similar government purposes; 
(c) rights management information  means: 
(i) electronic information that identifies a work, performance, or phonogram;  
the author of the work; the performer of  the performance; the producer of the 
phonogram; or the owner of any right in the work, performance, or phonogram; or 
(ii) electronic information about the terms a nd conditions of the use of the work, 
performance, or phonogram; or 
(iii) any electronic numbers or codes that represent such information,  
when any of these items is attached to  a copy of the work, performance, or 
phonogram or appears in connection with th e communication or making available of a 
work, performance, or phonogram to the public. Nothing in this paragraph shall obligate a Party to require the owner of any right in the work, performance, or 
phonogram to attach rights management  information to copies of the work, 
performance, or phonogram, or to cause right s management information to appear in 
connection with a communication of the work, performance, or phonogram to the 
public. WT/REG184/1 
Page 176  
 
9. Each Party shall provide appropriate laws, orde rs, regulations, governme nt issued guidelines, 
or administrative or executive decrees providing that its central government agencies not use 
infringing computer software and only use computer software as authorised in the relevant licence. 
These measures shall provide for the regulation of the acquisition and management of software for 
such government use and may take the form of procedures such as those under which an agency 
prepares and maintains inventories of software pre sent on the agency’s computers and inventories of 
software licenses.  
10. With respect to Articles 17.4, 17.5, and 17.6: 
(a) each Party shall confine limitations or excepti ons to exclusive rights to certain special 
cases that do not conflict with a normal e xploitation of the work, performance, or 
phonogram, and do not unreasonably prejudice th e legitimate interests of the right 
holder; 
(b) notwithstanding sub-paragraph (a) and Article 17.6.3(b), ne ither Party may permit the 
retransmission of television signals (wheth er terrestrial, cable, or satellite) on the 
Internet without the authorisation of the right holder or right holders, if any, of the 
content of the signal and of the signal; 
(c) unless otherwise specifically provided in this Ch apter, nothing in this Article shall be 
construed as reducing or extending the scope  of applicability of the limitations and 
exceptions permitted under the agreements re ferred to in Articles 17.1.2 and 17.1.4 
and the TRIPS Agreement. 
Article 17.5 
 
Copyright Works
 
  Without prejudice to Articles 11(1)(ii), 11 bis(1)(i) and (ii), 11 ter(1)(ii), 14(1)(ii), and 14 bis(1) 
of the Berne Convention, each Party shall provide to authors the exclusive right to authorise or 
prohibit the communication to the public of their work s, by wire or wireless means, including the 
making available to the public of their works in such a way that members of the public may access 
these works from a place and at a tim e individually chosen by them. 
 
Article 17.6 
 
Performers And Producers Of Phonograms
 
 1. Each Party shall accord the rights provided for in this Chapter with respect to performers and 
producers of phonograms to the performers and pr oducers of phonograms who are nationals of the 
other Party and to performances first fixed or phonogram s first fixed or first published in the territory 
of the other Party. A performance or phonogram shall be  considered first published in the territory of 
a Party in which it is published within 30 days of its original publication.
17-14 
2. Each Party shall provide to performers the right to authorise or prohibit: 
(a) the broadcasting and communication to the public of their unfixed performances, 
except where the performance is alr eady a broadcast performance; and 
(b) the fixation of their unfixed performances. 
                                                      
17-14 For the purposes of this Article, fixation  includes the finalisation of the master tape or its 
equivalent.   WT/REG184/1 
 Page 177 
 
 
3. (a) Each Party shall provide to performer s and producers of phonograms the right to 
authorise or prohibit the broadcasting or any communication to the public of their performances or phonograms by wire or wireless means, including the making available to the public of those perform ances and phonograms in such a way that 
members of the public may access them from a place and at a time individually 
chosen by them. 
(b) Notwithstanding sub-paragraph (a ) and Article 17.4.10, the application of this right to 
traditional free over-the-air (i.e., non-inter active) broadcasting, and exceptions or 
limitations to this right for such broadcasting activity, shall be a matter of each Party’s law. 
(c) Each Party may adopt limitations to this right in respect of other non-interactive 
transmissions in accordance with Article 17. 4.10, provided that the limitations do not 
prejudice the right of the performer or producer of phonograms to obtain equitable remuneration. 
4. Neither Party may subject the enjoyment and exercise of the rights of performers and 
producers of phonograms provided for in this Chapter to any formality. 
5. For the purposes of this Article and Article 17. 4, the following definitions apply with respect 
to performers and producers of phonograms: 
(a) broadcasting  means the transmission to the public by wireless means or satellite of 
sounds or sounds and images, or repr esentations thereof, including wireless 
transmission of encrypted signals where the means for decrypting are provided to the 
public by the broadcasting organisation or with its consent; “broadcasting” does not 
include transmissions over computer networks or any transmissions where the time and place of reception may be individually chosen by members of the public; 
(b) communication to the public  of a performance or a phonogram means the 
transmission to the public by any medium, otherwise than by broadcasting, of sounds 
of a performance or the sounds or the repr esentations of sounds fixed in a phonogram. 
For the purposes of paragraph 3, communication to the public  includes making the 
sounds or representations of sounds fixed in a phonogram audible to the public; 
(c) fixation  means the embodiment of sounds, or of the representations thereof, from 
which they can be perceived, reproduced, or communicated through a device; 
(d) performers  means actors, singers, musicians, dancers, and other persons who act, 
sing, deliver, declaim, play in, interpret,  or otherwise perform literary or artistic 
works or expressions of folklore; 
(e) phonogram  means the fixation of the sounds of a performance or of other sounds, or 
of a representation of sounds, other than in the form of a fixation incorporated in a 
cinematographic or other audiovisual work;  
(f) producer of a phonogram  means the person who, or the legal entity which, takes the 
initiative and has the responsibility for the first fixation of the sounds of a performance or other sounds, or the representations of sounds; and 
(g) publication  of a performance or a phonogram means the offering of copies of the 
performance or the phonogram to the public, w ith the consent of the right holder, and 
provided that copies are offered to the public in reasonable quantity. WT/REG184/1 
Page 178  
 
Article 17.7 
 
Protection Of Encrypted Programme-Carrying Satellite Signals
 
 1. Each Party shall make it a criminal offence: 
(a) to manufacture, assemble, modify, import, export, sell, lease, or otherwise distribute a 
tangible or intangible device or system, knowing or having reason to know that the 
device or system is primarily of assistance in decoding an encrypted programme-carrying satellite signal without the authorisation of the lawful distributor of such signal; and 
(b) wilfully to receive and make use of, or further distribute, a programme-carrying 
signal that originated as an encrypted programme-carrying satellite signal knowing that it has been decoded without the authorisation of the lawful distributor of the signal. 
2. Each Party shall provide for civil remedies, including compensatory damages, for any person 
injured by any activity described in paragraph 1, including any person that holds an interest in the 
encrypted program-carrying signal or its content. 
Article 17.8 
 
Designs
 
 
1. Each Party shall maintain protection for industrial designs that provides a right of 
presumptive validity and shall endeavour to simplify and streamline its administrative system for the 
benefit of users. 
2. Each Party shall endeavour to reduce differen ces in law and practice between the Parties’ 
industrial design systems. In addition, each Party shall endeavour to participate in international 
activities concerning industrial designs, including those ongoing within WIPO. 
Article 17.9 
 
Patents  
 1. Each Party shall make patents available for any invention, whether a product or process, in all 
fields of technology, provided that the invention is  new, involves an inventive step, and is capable of 
industrial application. The Parties confirm that pate nts shall be available for any new uses or methods 
of using a known product. For the purposes of this Article, a Party may treat the terms “inventive 
step” and “capable of industrial application”  as synonymous with the terms “non-obvious” and 
“useful”, respectively. 
2. Each Party may only exclude from patentability: 
(a) inventions, the prevention within their te rritory of the commercial exploitation of 
which is necessary to protect ordre public  or morality, including to protect human, 
animal, or plant life or health or to avoid serious prejudice to the environment, provided that such exclusion is not made merely because the exploitation is prohibited by law; and 
(b) diagnostic, therapeutic, and surgical methods for the treatment of humans and 
animals.  WT/REG184/1 
 Page 179 
 
 
3. A Party may provide limited exceptions to th e exclusive rights conferred by a patent, 
provided that such exceptions do not unreasonably c onflict with a normal exploitation of the patent 
and do not unreasonably prejudice the legitimate inter ests of the patent owner, taking account of the 
legitimate interests of third parties. 
4. Each Party shall provide that the exclusive right  of the patent owner to prevent importation of 
a patented product, or a product that results from a pa tented process, without the consent of the patent 
owner shall not be limited by the sale or distribution of  that product outside its territory, at least where 
the patentee has placed restrictions on importation by contract or other means. 
5. Each Party shall provide that a patent may only be revoked on grounds that would have 
justified a refusal to grant the patent, or on the basis of fraud, misrepresentation, or inequitable 
conduct. 
6. Consistent with paragraph 3, if  a Party permits a third person to use the subject matter of a 
subsisting patent to generate in formation necessary to support an a pplication for marketing approval 
of a pharmaceutical product, that Party shall provide that any product produced under such authority shall not be made, used, or sold in the territory  of that Party other than for purposes related to 
generating information to meet requirements for mark eting approval for the product, and if the Party 
permits exportation, the product sha ll only be exported outside the territory of that Party for purposes 
of meeting marketing approval requirements of that Party.  
7. A Party shall not permit the use
17-15 of the subject matter of a patent without the authorisation 
of the right holder except in the following circumstances: 
(a) to remedy a practice determined after judicial or administrative process to be 
anticompetitive under the Party’s laws rela ting to prevention of anti-competitive 
practices;17-16 or 
(b) in cases of public non-commercial use, or of national emergency, or other 
circumstances of extreme urgency, provided that: 
(i) the Party shall limit such use to use by the government or third persons 
authorised by the government; 
(ii) the Party shall ensure that the pate nt owner is provided with reasonable 
compensation for such use; and 
(iii) the Party may not require the patent owner to provide undisclosed 
information or technical know-how relate d to a patented invention that has 
been authorised for use in acco rdance with this paragraph. 
8. (a) If there are unreasonable delays in a Part y’s issuance of patents, that Party shall 
provide the means to, and at the request of a pa tent owner, shall, adjust the term of the 
patent to compensate for such delays. An unreasonable delay shall at least include a delay in the issuance of a patent of more than  four years from the date of filing of the 
application in the Party, or two years after a request for examination of the application 
has been made, whichever is later. For the purposes of this paragraph, any delays that 
occur in the issuance of a patent due to peri ods attributable to actions of the patent 
                                                     
 
17-15 “Use” in this paragraph refers to use other than that allowed under paragraph 3 and Article 30 of 
the TRIPS Agreement. 
17-16 With respect to sub-paragraph (a), the Parties recognize that a patent does not necessarily confer 
market power. WT/REG184/1 
Page 180  
 
applicant or any opposing third person need  not be included in the determination of 
such delay. 
(b) With respect to a pharmaceutical product
17-17 that is subject to a patent, each Party 
shall make available an adjustment of the patent term to compensate the patent owner 
for unreasonable curtailment of the effective patent term as a result of the marketing 
approval process. 
9. Each Party shall disregard information contained in public disclosures used to determine if an 
invention is novel or has an inventive step if the p ublic disclosure, (a) was made or authorised by, or 
derived from, the patent applicant and (b) occurs wi thin 12 months prior to the date of filing of the 
application in the territory of the Party. 
10. Each Party shall provide patent applicants with at least one opportunity to make amendments, 
corrections, and observations in conn ection with their applications.  
11. Each Party shall provide that a disclosure of a claimed invention shall be considered to be 
sufficiently clear and complete if it provides inform ation that allows the invention to be made and 
used by a person skilled in the art, without undue experimentation, as of the filing date. 
12. Each Party shall provide that a claimed inventio n is sufficiently supported by its disclosure if 
the disclosure reasonably conveys to a person skilled in the art that the applicant was in possession of 
the claimed invention, as of the filing date. 
13. Each Party shall provide that a claimed invention is useful if it has a specific, substantial, and 
credible utility. 
14. Each Party shall endeavour to reduce difference s in law and practice between their respective 
systems, including in respect of differences in dete rmining the rights to an invention, the prior art 
effect of applications for patents, and the division of an application containing multiple inventions. In 
addition, each Party shall endeavour to participat e in international patent harmonisation efforts, 
including the WIPO fora addressing reform and de velopment of the international patent system. 
15. Each Party shall endeavour to establish a c ooperative framework between their respective 
patent offices as a basis for progress towards the mu tual exploitation of search and examination work. 
Article 17.10 
 
Measures Related To Certain Regulated Products  
 1. (a) If a Party requires, as a condition of approving the marketing of a new pharmaceutical 
product, the submission of undisclosed test or other data concerning safety or efficacy 
of the product, the Party shall not permit third persons, without the consent of the 
person who provided the information, to ma rket the same or a similar product on the 
basis of that information, or the marke ting approval granted to the person who 
submitted such information, for at least five years from the date of marketing 
approval by the Party. 
(b) If a Party requires, as a condition of approvi ng the marketing of a new agricultural 
chemical product, including certain new u ses of the same product, the submission of 
                                                     
 
17-17 For Australia, the term pharmaceutical substance as  used in Section 70 of the Patents Act 1990 on 
the date of entry into force of this Agreemen t may be treated as synonymous with the term pharmaceutical 
product  as used in this sub-paragraph.  WT/REG184/1 
 Page 181 
 
 
undisclosed test or other data concerning safety or efficacy of that product, the Party shall not permit third persons, without the consent of the person who provided the 
information, to market the sa me or a similar product on the basis of that information, 
or the marketing approval granted to the person who submitted such information, for 
ten years from the date of the marketing approval of the new agricultural chemical 
product by the Party. 
(c) If a Party permits, as a condition of approvi ng the marketing of a new pharmaceutical 
or agricultural chemical product, third persons to submit evidence concerning the safety or efficacy of a product that was previously approved in another territory, such as evidence of prior marketing approval, the Party shall not permit third persons, 
without the consent of the person who pr eviously submitted in formation concerning 
safety or efficacy, to market the same or a similar product on the basis of evidence of prior marketing approval in another terr itory, or information concerning safety or 
efficacy that was previously submitted to  obtain marketing approval in another 
territory, for at least five years, and ten years for agricultural chemical products, from 
the date of marketing approval by the Party,  or the other territory, whichever is late.
17-
18 
(d) For the purposes of this Article, a new product  is one that does not contain a 
chemical entity that has been previously  approved for marketing in the Party.  
(e) If any undisclosed information concerning the safety or efficacy of a product 
submitted to a government entity, or entity acting on behalf of a government, for the 
purposes of obtaining marketing approval is disclosed by a government entity, or 
entity acting on behalf of a government, each Party is required to protect such 
information from unfair commercial use in the manner set forth in this Article. 
2. With respect to pharmaceutical products, if a Party requires the submission of: (a) new 
clinical information (other than information rela ted to bioequivalency) or (b) evidence of prior 
approval of the product in another territory that re quires such new information, which is essential to 
the approval of a pharmaceutical product, the Pa rty shall not permit third persons not having the 
consent of the person providing the information to market the same or a similar pharmaceutical 
product on the basis of the marketing approval gran ted to a person submitting the information for a 
period of at least three years from the date of the marketing approval by the Party or the other territory, whichever is later.
17-19 
3. When a product is subject to a system of ma rketing approval in accordance with paragraph 1 
or 2, as applicable, and is also subj ect to a patent in the territory of that Party, the Party shall not alter 
the term of protection that it provides pursuant to paragraph 1 or 2 in the event that the patent protection terminates on a date earlier than the end of  the term of protection specified in paragraph 1 
or 2, as applicable. 
4. Where a Party permits, as a condition of a pproving the marketing of a pharmaceutical 
product, persons, other than the pers on originally submitting the safety or efficacy information, to rely 
                                                     
 
17-18 The Parties acknowledge that, at the time of entry into force of  this Agreement, neither Party 
permits third persons, not having the consent of the person that previously submitted information concerning the 
safety and efficacy of a product in or der to obtain marketing ap proval in another territory, to market a same or 
similar product in the territory of the Party on the basis of such information or evidence of prior marketing 
approval in another territory. 
17-19 As an alternative to this paragraph, where a Pa rty, on the date of entry into force of this 
Agreement, has in place a system fo r protecting information submitted in  connection with the approval of a 
pharmaceutical product that utilizes a pr eviously approved chemical compon ent from unfair commercial use, the 
Party may retain that system, notwithstanding the obligations of this paragraph. WT/REG184/1 
Page 182  
 
on evidence or information concerning the safety or efficacy of a product that was previously 
approved, such as evidence of prior marketing approval by the Party or in another territory: 
(a) that Party shall provide measures in its marketing approval process to prevent those 
other persons from: 
(i) marketing a product, where that product is claimed in a patent; or 
(ii) marketing a product for an approved use,  where that approved use is claimed 
in a patent,  
during the term of that patent, unless by consent or acquiescence of the patent owner; 
and 
(b) if the Party permits a third person to requ est marketing approval to enter the market 
with: 
(i) a product during the term of a patent identified as claiming the product; or 
(ii) a product for an approved use, during the term of a patent identified as 
claiming that approved use,  
the Party shall provide for the patent owne r to be notified of such request and the 
identity of any such other person. 
Article 17.11 
 
Enforcement Of Intellectual Property Rights
 
 
General Obligations 
 
1. For greater clarity, the obligations specified in this Article are limited to the enforcement of 
intellectual property rights, or, if mentioned,  a particular intellectual property right. 
2. Each Party shall provide that final judicial  decisions or administrative rulings for the 
enforcement of intellectual property rights that under the Party’s law are of ge neral applicability shall 
be in writing and shall state any relevant findings of fact and the reasoning, or the legal basis on 
which the decisions or rulings are based. Each Party shall provide that such decisions or rulings shall 
be published17-20 or, where such publication is not practicable, otherwise made available to the public, 
in a national language in such a manner as to enable governments and right holders to become 
acquainted with them. 
3. Each Party shall inform the public of its efforts to provide effective enforcement of 
intellectual property rights in its civil, administra tive, and criminal system, including any statistical 
information that the Party may collect for such purpose. 
4. In civil, criminal, and if applicable, administrative procedures, involving copyright, each 
Party shall provide for a presumption that, in the absence of evidence to the contrary, the person 
whose name is indicated in the usual manner is  the right holder in the work, performance, or 
phonogram as designated. Each Party shall also provi de for a presumption, in the absence of evidence 
                                                      
17-20 A Party may satisfy the requirement for publication by making the measure available to the public 
on the Internet.  WT/REG184/1 
 Page 183 
 
 
to the contrary, of all the factual elements necessar y to establish under its law that copyright subsists 
in such subject matter. 
Civil and Administrative Procedures and Remedies 
 
5. Each Party shall make available to right holders17-21 civil judicial procedures concerning the 
enforcement of any intellectual property right. 
6. Each Party shall provide that: 
(a) in civil judicial proceedings, its judicial authorities shall have the authority to order 
the infringer to pay the right holder: 
(i) damages adequate to compensate for th e injury the right holder has suffered 
as a result of the infringement; and 
(ii) at least in the case of copyright infringement and trademark counterfeiting, 
the profits of the infringer that are attributable to the infringement and that are not taken into account in computing the amount of the damages referred to in clause (i). 
(b) in determining damages for infringement of intellectual property rights, its judicial 
authorities shall consider, inter alia , any legitimate measure of the value of the 
infringed on good or service that the right holder submits, including the suggested retail price. 
7. (a) In civil judicial proceedings, each Party shall, at least with respect to works, 
phonograms, and performances protected by copyright, and in cases of trademark 
counterfeiting, establish or maintain pre- established damages, which shall be 
available on the election of the right holder. Such pre-established damages shall be in an amount sufficient to constitute a dete rrent to future infringements and to 
compensate fully the right holder for th e harm caused by the infringement. 
(b) As an alternative to the requirements in  sub-paragraph (a) with respect to both 
copyright and to trademark counterfeiting, a Party may maintain a system of 
additional damages in civil judicial proceed ings involving infringement of copyright 
in works, phonograms, and performances; provi ded that if such additional damages, 
while available, are not regularly awarded in  proceedings involving deliberate acts of 
infringement where needed to deter infringe ment, that Party shall promptly ensure 
that such damages are regularly awarded or establish a system of pre-established 
damages as specified in sub-paragraph (a) with respect to copyright infringement. 
8. Each Party shall provide that its judicial author ities shall have the authority to order, at the 
conclusion of civil judicial proceedings at least for copyright infringement and trademark 
counterfeiting, that the prevailing party be awarde d payment of court costs or fees and reasonable 
attorney’s fees by the losing party.
17-22 Further, each Party shall provide that its judicial authorities, at 
least in exceptional circumstances, sh all have the authority to order, at the conclusion of civil judicial 
                                                      
17-21 For the purpose of this Article, the term right holder  shall include exclusive licensees as well as 
federations and associations having the legal standing an d authority to assert such rights; the term exclusive 
licensee shall include the exclusive licensee  of any one or more of the exclusive intellectual property rights 
encompassed in a given intellectual property. 
17-22 A Party may limit this authority in exceptional circumstances. WT/REG184/1 
Page 184  
 
proceedings concerning patent infringement, that  the prevailing party be  awarded payment of 
reasonable attorney’s fees by the losing party.  
9. In civil judicial proceedings concerning copy right infringement and trademark counterfeiting, 
each Party shall provide that its judicial authorities shall have the authority to order the seizure of 
suspected infringing goods, any related material s and implements, and, at least for trademark 
counterfeiting, documentary evidence relevant to the infringement. 
10. Each Party shall provide that: 
(a) in civil judicial proceedings, at the right holder’s request, goods that have been found 
to be pirated or counterfeit in breach of a copyright or trademark of the right holder 
shall be destroyed, except in exceptional circumstances;
17-23 
(b) its judicial authorities shall have the author ity to order that materials and implements 
that have been used in the manufacture or the creation of such pirated or counterfeit 
goods be, without compensation of any sort, promptly destroyed or, in exceptional circumstances, without compensation of any so rt, disposed of  outside the channels of 
commerce in such a manner as to minimise the risks of further infringements; and 
(c) in regard to counterfeit trademarked goods , the simple removal of the trademark 
unlawfully affixed shall not be sufficient to permit the release of goods into the 
channels of commerce. 
11. Each Party shall provide that in civil judici al proceedings concerning the enforcement of 
intellectual property rights, its judicial authorities shall have the authority to order the infringer to provide any information that the infringer possesses regarding any person involved in any aspect of 
the infringement and regarding the means of produc tion or distribution channel of the infringing 
material, and to provide this information to th e right holder’s representative in the proceedings.
17-24 
12. Each Party shall provide that in judicial  proceedings concerning the enforcement of 
intellectual property rights, its judicial authorities shall have the authority to:  
(a) fine or imprison, in appropriate cases, a pa rty to litigation who fails to abide by valid 
orders issued by such authorities; and 
(b) impose sanctions on parties to litigation, their counsel, experts, or other persons 
subject to the court’s jurisdiction, for vi olation of judicial orders regarding the 
protection of confidential information pr oduced or exchanged in a proceeding. 
13. (a)  In civil judicial proceedings concer ning the acts described in Article 17.4.7 and 
17.4.8, each Party shall provide that its judi cial authorities shall have the authority to 
order or award at least: 
(i) provisional measures, including the seizure of devices and products suspected 
of being involved in the proscribed activity; 
(ii) damages of the type available for infringement of copyright; 
                                                      
17-23 A Party may give effect to paragraph 10(a) through, inter alia , the exercise of ju dicial discretion or 
pursuant to specific causes of action, as applicable. 
17-24 For greater clarity, this provision does not apply to  the extent that it would conflict with common 
law or statutory privileges, such as legal professional privilege.  WT/REG184/1 
 Page 185 
 
 
(iii) payment to the prevailing party of court costs and fees and reasonable 
attorney’s fees;17-25 and 
(iv) destruction of devices and products found to be involved in the proscribed 
activity. 
(b) A Party may provide that damages shall not be available against a non-profit library, 
archive, education institution, or publ ic non-commercial broadcasting entity that 
sustains the burden of proving that it was not aware or had no reason to believe that 
its acts constituted a proscribed activity. 
14. Each Party shall provide that its judicial author ities shall have the authority to enjoin a party 
to a civil judicial proceeding from the exportation of  goods that are alleged to infringe an intellectual 
property right. 
15. If a Party’s judicial or other authorities appoint technical or other experts in civil judicial 
proceedings concerning the enforcement of intellectua l property rights, and require that the parties to 
litigation or other civil or criminal proceedings bear the costs of such experts, the Party should seek to 
ensure that these costs are reasona ble and related appropriately to, inter alia , the quantity and nature 
of work to be performed and do  not unreasonably deter recourse to  such litigation or proceeding. 
Provisional measures 
 
16. Each Party’s authorities shall act on requests for relief inaudita altera parte  expeditiously in 
accordance with the Party’s judicial rules. 
17. With respect to provisional measures, each Part y shall provide that its judicial authorities 
shall have the authority to require the applicant to  provide any reasonably available evidence in order 
to satisfy themselves with a sufficient degree of certa inty that the applicant’s right is being infringed 
or that such infringement is imminent, and to orde r the applicant to provide a reasonable security or 
equivalent assurance set at a level sufficient to prot ect the respondent and to prevent abuse, and so as 
not to unreasonably deter recourse to such procedures. 
18. In proceedings concerning the grant of provisi onal measures in relation to enforcement of a 
patent, each Party shall provide for a rebutta ble presumption that the patent is valid.  
Special requirements related to border measures 
 
19. Each Party shall provide that any right holde r initiating procedures for that Party’s customs 
authorities to suspend the rel ease of suspected counterfeit17-26 or confusingly similar trademark goods, 
or pirated copyright goods,17-27 into free circulation is required to provide adequate evidence to satisfy 
the competent authorities, administrative or judicial that, under the laws of the territory of importation, there is prima facie  an infringement of the right holder's intellectual property right and to 
supply sufficient information that may reasonably be expected to be within the right holder’s 
                                                     
 
17-25 Reasonable attorney's fees may include those levied pursuant to relevant court fee schedules. 
17-26 For the purposes of paragraphs 19 through 24, counterfeit trademark goods  means any goods, 
including packaging, bearing without authorisation a tr ademark that is identical to the trademark validly 
registered in respect of such goods, or that cannot be distinguished in its essential aspects from such a trademark, and that thereby infringes the rights of the owner of the trademark in question under the law of the 
country of importation. 
17-27 For the purposes of paragraphs 19 through 24, pirated copyright goods means any goods that are 
copies made without the consent of the right holder or person duly authorised by the right holder in the country 
of production and that are made directly or indirectly from an article where the making of that copy would have 
constituted an infringement of a copyright or a related right under the law of the country of importation. WT/REG184/1 
Page 186  
 
knowledge to make the suspected goods reasonably r ecognisable by the Party’s customs authorities. 
The requirement to provide sufficient informati on shall not unreasonably deter recourse to these 
procedures. Each Party shall provide that the appli cation to suspend the rel ease of goods shall remain 
in force for a period of not less than one year from the date of application or the period that the good 
is protected by copyright or the relevant trad emark is registered, whichever is shorter. 
20. Each Party shall provide that its competent au thorities shall have the authority to require a 
right holder initiating procedures to suspend the release of goods suspected of being counterfeit 
trademark or pirated copyright goods to provide a reasonable secu rity or equivalent assurance 
sufficient to protect the defendant and the competen t authorities and to prevent abuse. Each Party 
shall provide that such security or equivalent assu rance shall not unreasonably deter recourse to these 
procedures. Each Party may provide that such security  may be in the form of a documentary guarantee 
conditioned to hold the importer or owner of th e imported merchandise harmless from any loss or 
damage resulting from any suspension  of the release of goods in th e event the competent authorities 
determine that the article is not an infringing good. 
21. Where its competent authorities have made a determination that goods  are counterfeit or 
pirated, a Party shall provide that its competent authorities have the authority to inform the right 
holder of the names and addresses of the consignor,  the importer, and the consignee, and of the 
quantity of the goods in question. 
22. Each Party shall provide that its customs authorities may initiate border measures ex officio  
with respect to imported merchandise suspected of infringing being counterfeit trademark or pirated 
copyright goods, without the need for a specific formal complaint. 
23. Each Party shall provide that goods that have  been suspended from release by its customs 
authorities, and that have been forfeited as pirate d or counterfeit, shall be destroyed, except in 
exceptional cases. In regard to counterfeit trademar k goods, the simple removal of the trademark 
unlawfully affixed shall not be sufficient to perm it the release of the goods into the channels of 
commerce. In no event shall the competent author ities be authorised to permit the exportation of 
counterfeit or pirated goods that have been seized, nor shall they be authorised to permit such goods 
to be subject to movement under customs c ontrol, except in exceptional circumstances. 
24. Each Party shall provide that where an applica tion fee or merchandise storage fee is assessed 
in connection with border measures to enforce a tradem ark or copyright, the fee shall not be set at an 
amount that unreasonably deters recourse to these measures.  
25. Each shall provide the other, on mutually agreed terms, with technical advice on the 
enforcement of border measures concerning intellectua l property rights, and the Parties shall promote 
bilateral and regional coope ration on such matters. 
Criminal procedures and remedies 
 
26. (a) Each Party shall provide for criminal pro cedures and penalties to be applied at least in 
cases of wilful trademark counterfeiting or copyright piracy on a commercial scale. 
Wilful copyright piracy on a commercial scale includes:  
(i) significant wilful infringements of copyright, that have no direct or indirect 
motivation of financial gain; and 
(ii) wilful infringements for the purposes of commercial advantage or financial 
gain.  WT/REG184/1 
 Page 187 
 
 
(b) Each Party shall treat wilful importation or exportation17-28 of pirated copyright goods 
or of counterfeit trademark goods as unlawfu l activities subject to criminal penalties 
to at least the same extent as traffick ing or distributing such goods in domestic 
commerce. 
27. In cases of wilful trademark counterfeiting or c opyright piracy on a commercial scale, each 
Party shall provide: 
(a) penalties that include imprisonment and moneta ry fines sufficiently high to provide a 
deterrent to infringement consistent with a policy of removing the monetary incentive 
of the infringer. Also, each Party shall en courage its judicial authorities to impose 
fines at levels sufficient to provide a deterrent to future infringements; 
(b) that its judicial authorities shall have the authority to order the seizure of suspected 
counterfeit or pirated goods, any related ma terials and implements that have been 
used in the commission of the offence, any assets traceable to the infringing activity, 
and any documentary evidence relevant to the offence;17-29 
(c) that its judicial authorities shall have the authority, among other measures, to order 
the forfeiture of any assets traceable to the infringing activity for at least indictable 
offences, and shall, except in exceptiona l circumstances, order the forfeiture and 
destruction of all goods found to be counterfeit or pirated, and, at least with respect to 
wilful copyright piracy, order the forfeiture and destruction of materials and implements that have been used in th e creation of the infringing goods. Each Party 
shall further provide that such forfeitu re and destruction shall occur without 
compensation to the defendant; and 
(d) that the appropriate authorities, as determined  by each Party, shall have the authority 
to initiate criminal legal action ex officio  with respect to the offences described in this 
Chapter without the need for a formal complaint by a private party or right holder. 
28. Each Party shall provide for criminal pro cedures and penalties for the knowing transport, 
transfer, or other disposition of, in the course of tr ade, or the making or obtaining control of, with 
intent to so transport, transfer, or otherwise dispo se of, in the course of trade, to another for anything 
of value: 
(a) either false or counterfeit labels affixed or  designed to be affixed to, at least the 
following: 
(i) a phonogram; 
(ii) a copy of a computer program or documentation; 
(iii) the packaging for a computer program; or 
(iv) a copy of a motion picture or other audiovisual work; or 
(b) counterfeit documentation or packaging for a computer program where the 
documentation or packaging has been made or obtained without the authorisation of 
the right holder. 
                                                     
 
17-28 A Party may comply with paragraph 26(b) in relation to exportation through its measures 
concerning distribution or trafficking. 
17-29 Each Party shall provide that items  that are subject to seizure purs uant to any such judicial order 
need not be individually identified so long as they fall within general categories specified in the order. WT/REG184/1 
Page 188  
 
Limitations on liability for service providers 
 
29. Consistent with Article 41 of the TRIPS Agreement, for the purposes of providing 
enforcement procedures that permit effective action against any act of copyright infringement covered 
under this Chapter, including expeditious remedies  to prevent infringements and criminal and civil 
remedies, each Party shall provide, consistent w ith the framework specified in this Article: 
(a) legal incentives for service providers to coope rate with copyright owners in deterring 
the unauthorised storage and transmission of copyrighted materials; and  
(b) limitations in its law regarding the sc ope of remedies available against service 
providers for copyright infringements that they do not control, initiate, or direct, and 
that take place through systems or networks  controlled or operated by them or on 
their behalf, as set forth in this sub-paragraph.
17-30 
(i) These limitations shall preclude mone tary relief and provide reasonable 
restrictions on court-ordered relief to compel or restrain certain actions for 
the following functions, and shall be confined to those functions:17-31 
(A) transmitting, routing, or providing connections for material without 
modification of its content, or the intermediate and transient storage of such material in the course thereof; 
 
(B) caching carried out through an automatic process; 
 
(C) storage at the direction of a user of material residing on a system or 
network controlled or operated by or for the service provider; and 
 
(D) referring or linking users to an online location by using information 
location tools, including hyperlinks and directories. 
 
(ii) These limitations shall apply only where the service provider does not initiate 
the chain of transmission of the material and does not select the material or its recipients (except to the extent that  a function described in clause (i)(D) in 
itself entails some form of selection). 
(iii) Qualification by a service provider for the limitations as to each function in 
clause (i)(A) through (D) shall be co nsidered separately from qualification 
for the limitations as to each other function, in accordance with the conditions for qualification set forth in clauses (iv) through (vii). 
(iv) With respect to function referred to in clause (i)(B), the limitations shall be 
conditioned on the service provider: 
(A) permitting access to cached material in significant part only to users 
of its system or network who have  met conditions on user access to 
that material; 
 
                                                     
 
17-30 Paragraph 29(b) is without prejud ice to the availability of defences to copyright infringement that 
are of general applicability. 
17-31 Either Party may request consultations with the ot her Party to consider how to address under this 
paragraph functions of a similar nature to the functions identified in paragraphs (A) through (D) above that a 
Party identifies after the entry in to force of this Agreement.  WT/REG184/1 
 Page 189 
 
 
(B) complying with rules concerning the refreshing, reloading, or other 
updating of the cached material when  specified by the person making 
the material available online in accordance with a relevant industry 
standard data communications prot ocol for the system or network 
through which that person makes the material available that is 
generally accepted in the Party’s territory; 
 (C) not interfering with technology used at the originating site consistent 
with industry standards generally accepted in the Party’s territory to obtain information about the use of the material, and not modifying 
its content in transmission to subsequent users; and  
 (D) expeditiously removing or disabling access, on receipt of an effective 
notification of claimed infringement, to cached material that has been removed or access to which has been disabled at the originating site. 
 
(v) With respect to functions referred to in  clause (i)(C) and (D), the limitations 
shall be conditioned on the service provider: 
(A)  not receiving a financial benefit directly attributable to the infringing 
activity, in circumstances where it h as the right and ability to control 
such activity; 
 
(B)  expeditiously removing or disabling access to the material residing on 
its system or network on obtaining actual knowledge of the infringement or becoming aware of facts or circumstances from which the infringement was apparent, such as through effective 
notifications of claimed infringement in accordance with clause (ix); 
and 
 (C)  publicly designating a representativ e to receive such notifications. 
 
(vi) Eligibility for the limitations in this sub-paragraph shall be conditioned on the 
service provider: 
(A) adopting and reasonably implementing a policy that provides for 
termination in appropriate circumst ances of the accounts of repeat 
infringers; and 
 
(B) accommodating and not interfering w ith standard technical measures 
accepted in the Party’s territory that  protect and identify copyrighted 
material, that are developed through an open, voluntary process by a broad consensus of copyright owners and service providers, that are available on reasonable and non-discriminatory terms, and that do not impose substantial costs on service pr oviders or substantial burdens 
on their systems or networks. 
 
(vii) Eligibility for the limitations in this sub-paragraph may not be conditioned on 
the service provider monitoring its service, or affirmatively seeking facts indicating infringing activity, except to the extent consistent with such 
technical measures. 
(viii) If the service provider qualifies for the limitations with respect to the function 
referred to in clause (i)(A), court-ordered relief to compel or restrain certain WT/REG184/1 
Page 190  
 
actions shall be limited to termina ting specified accounts, or to taking 
reasonable steps to block access to a specific, non-domestic online location. If the service provider qualifies for the lim itations with respect to any other 
function in clause (i), court-ordered relief to compel or restrain certain actions shall be limited to removing or di sabling access to the infringing material, 
terminating specified accounts, and other remedies that a court may find 
necessary provided that such other re medies are the least burdensome to the 
service provider among comparably effectiv e forms of relief. Each Party shall 
provide that any such relief shall be is sued with due regard for the relative 
burden to the service provider and harm to the copyright owner, the technical 
feasibility and effectiveness of the remedy, and whether less burdensome, 
comparably effective enforcement meth ods are available. Except for orders 
ensuring the preservation of evidence, or other orders having no material adverse effect on the operation of the service provider’s communications network, each Party shall provide that such relief shall be  available only 
where the service provider has received notice and an opportunity to appear 
before the judicial authority. 
(ix) For the purposes of the notice and take down process for the functions 
referred to in clause (i)(C) and (D), each Party shall establish appropriate 
procedures for effective notifications of claimed infringement, and effective 
counter-notifications by those whose material is the subject of a notice for 
removal or disabling, on the basis of a good faith belief that it was issued by 
mistake or misidentification in accord ance with clause (v)(B). Each Party 
shall also provide for monetary re medies against any person who makes a 
knowing material misrepresentation in a notification or counter-notification that causes injury to any interested party as a result of a service provider 
relying on the misrepresentation. 
(x) If the service provider removes or disab les access to material in good faith 
based on claimed or apparent infringeme nt, each Party shall provide that the 
service provider shall be exempted from liability for any resulting claims, provided that, in the case of material residing on its system or network, it takes reasonable steps promptly to notify the person making the material 
available on its system or network that  it has done so and, if such person 
makes an effective counter-notification and is subject to jurisdiction in an 
infringement suit, to restore the material online unless the person giving the original effective notification seeks judicial relief within a reasonable time. 
(xi) Each Party shall provide for an administrative or judicial procedure enabling 
copyright owners who have given effective notification of claimed 
infringement to obtain expeditiously from a service provider information in its possession identifying the alleged infringer. 
(xii) For the purposes of the function referred to in clause (i)(A), service provider  
means a provider of transmission, routing, or connections for digital online communications without modification of their content between or among 
points specified by the user of material of the user’s choosing, and for the 
purposes of the functions referred to in clause (i)(B) through (D), service 
provider  means a provider or operator of facilities for online services or 
network access.  WT/REG184/1 
 Page 191 
 
 
Article 17.12 
 
Transitional Provisions  
  Recognizing that Australian law currently restricts making and distributing devices or 
providing services to circumvent effective technological  measures, Australia shall fully implement the 
obligations set forth in Article 17.4.7 within two years of the date of entry into force of this 
Agreement. In the interim, Aust ralia may not adopt any new measure that is less consistent with 
Article 17.4.7 or apply any new or existing measure  so as to reduce the level of protection provided 
on the date of entry into force of this Agreement. 
 
CHAPTER EIGHTEEN: LABOUR 
 
Article 18.1 
 
Statement Of Shared Commitment
 
 1. The Parties reaffirm their obligations as memb ers of the International Labour Organization 
(ILO) and their commitments under the ILO Declaration on Fundamental Principles and Rights at 
Work and its Follow-up (1998)  (ILO Declaration). Each Party shall strive to ensure that such labour 
principles and the internationally recognised labour principles and rights set forth in Article 18.7 are 
recognised and protected by its law.  
2. Recognizing the right of each Party to establish its own labour standards, and to adopt or 
modify accordingly its labour laws, each Party shall strive to ensure that its laws provide for labour 
standards consistent with the inte rnationally recognised labour principles and rights set forth in Article 
18.7 and shall strive to improve those standards c onsistent with the goal of maintaining high quality 
and high productivity workplaces. 
Article 18.2 
 
Application And Enforcement Of Labour Laws
 
 1. (a) A Party shall not fail to effectively enfo rce its labour laws, through a sustained or 
recurring course of action or inaction, in a manner affecting trade between the Parties, 
after the date of entry into force of this Agreement. 
(b) The Parties recognise that each Party retain s the right to exercise discretion with 
respect to investigatory, prosecutorial, regulatory, and compliance matters and to 
make decisions regarding the allocation of resources to enforcement with respect to 
other labour matters determin ed to have higher priority. Accordingly, the Parties 
understand that a Party is in compliance w ith sub-paragraph (a) where a course of 
action or inaction reflects a reasonable exercise of such discretion, or results from a bona fide  decision regarding the allocation of resources. 
2. The Parties recognise that it is inappropriate to  encourage trade or investment by weakening 
or reducing the protections afforded in their r espective labour laws. Accordingly, each Party shall 
strive to ensure that it does not waive or otherwi se derogate from, or offer to waive or otherwise 
derogate from, such laws in a manner that weak ens or reduces adherence to the internationally 
recognised labour principles and rights referred to in  Article 18.7 as an encouragement for trade with 
the other Party, or as an encouragement for the establishment, acquisition, expansion, or retention of an investment in its territory.  WT/REG184/1 
Page 192  
 
Article 18.3 
 
Procedural Guarantees And Public Awareness
 
 1. Each Party shall ensure that persons with a legally recognised interest under its law in a 
particular matter have appropriate access to administ rative, quasi-judicial, judicial, or labour tribunals 
for the enforcement of the Party’s labour laws. 
2. Each Party shall ensure that the proceedings of  its administrative, quasi-judicial, judicial, or 
labour tribunals for the enforcement of its labour  laws are fair, equitable, and transparent. 
3. Each Party shall provide that the parties to su ch proceedings may seek remedies to ensure the 
enforcement of their rights under its labour laws. 
4. Each Party shall promote public awareness of its labour laws by ensuring that information is 
available to the public regarding its labour laws and enforcement and compliance procedures. A Party 
may use a variety of means available for this pur pose, such as publishing information and notices in 
official bulletins and the mass media, publishing and distributing information manuals, undertaking 
compliance assistance programs, conducting meetings , and making information available through the 
Internet. 
5. For greater certainty, nothing in this Chapter sh all be construed as calling for the examination 
under this Agreement of whether a Party’s court has appropriately applied that Party’s labour laws. 
Article 18.4 
 
Institutional Arrangements
 
 1. In carrying out its functions, the Joint Comm ittee established under Chapter 21 (Institutional 
Arrangements and Dispute Settlement) shall consider ma tters related to the operation of this Chapter 
and the pursuit of the Chapter’s objectives. Th e Joint Committee may establish a Subcommittee on 
Labour Affairs, comprised of central government offi cials of each Party who are primarily responsible 
for labour or workplace relations, and officials of othe r appropriate agencies, to meet at such times as 
they deem appropriate to discuss the operation of this Chapter. Each meeting of the Subcommittee 
normally shall include a public session.  
2. Each Party shall designate an office within its  central government agency that deals with 
labour or workplace relations, which shall serve as a c ontact point with the other Party, and with the 
public, for the purposes of this Chapter.  Each Party’s contact point shall: 
(a) provide for the submission, receipt, and c onsideration of public communications on 
matters related to this Chapter, make the communications available to the other Party 
and, as appropriate, to the public, and revi ew the communications, as appropriate, in 
accordance with its procedures; and 
(b) coordinate the development and impl ementation of cooperative activities under 
Article 18.5. 
3. Each Party may consult with representatives of its labour and business organizations and 
other persons, including through its advisory commit tees, for advice on the operation of this Chapter 
by whatever means that Party considers appropriate. 
4. Each formal decision of the Parties concerning the operation of this Chapter shall be made 
public, unless the Joint Comm ittee decides otherwise.  WT/REG184/1 
 Page 193 
 
 
Article 18.5 
 
Labour Cooperation  
 1. Recognizing that cooperation provides opportunities to promote respect for workers’ rights 
and the rights of children consistent  with core labour standards of the ILO, the Parties shall cooperate 
on labour matters of mutual interest and explor e ways to further advance labour standards on a 
bilateral, regional, and multilateral basis. To that  end, the Parties hereby establish a consultative 
mechanism for such cooperation. 
2. Cooperative activities may include work on labour law and practice in the context of the ILO 
Declaration, and such other matters as the Parti es agree. In identifying areas for cooperation, the 
Parties shall consider the views of their respec tive worker and employer representatives and other 
persons, as appropriate. 
3. Cooperative activities may take the form of exchanges of information, joint research 
activities, visits, or conferences, and such other form s of technical exchange as the Parties may agree. 
Article 18.6 
 
Labour Consultations
 
 
1. A Party may request consultations with the other Party regarding any matter arising under this 
Chapter. Unless the Parties agree otherwise, cons ultations shall commence within 30 days after a 
Party delivers a request for consultations to the other Party’s contact point designated pursuant to 
Article 18.4.2. 
2. The Parties shall make every attempt to arrive at a mutually satisfactory resolution of the 
matter and may seek advice or assistance from any person or body they deem appropriate.  
3. If the consultations fail to resolve the matter, either Party may request that the Subcommittee 
on Labour Affairs be convened. The Subcommittee shall convene within  30 days after a Party delivers 
a request to the other Party’s contact point, unless the Parties otherwise agree. If the Joint Committee 
has not established the Subcommittee as of the date a Party delivers a request, they shall do so during 
the 30-day period described in this paragraph. The Subcommittee shall endeavour to resolve the 
matter expeditiously, including, wh ere appropriate, by consulting govern mental or outside experts and 
having recourse to such procedures as go od offices, conciliation, or mediation. 
4. If a Party considers that the other Party has fa iled to carry out its obligations under Article 
18.2.1(a), the Party may request consultations under paragraph 1 or pursuant to Article 21.5 
(Consultations). 
(a) If a Party requests consultations pursuant to Article 21.5 at a time when the Parties 
are engaged in consultations on the sa me matter under paragraph 1 or the 
Subcommittee is endeavouring to resolve the matter under paragraph 3, the Parties 
shall discontinue their efforts to resolve the matter under this Article. Once consultations have begun unde r Article 21.5, no consultations on the same matter 
may be entered into under this Article. 
(b) If a Party requests consultations pursuant to Article 21.5 more than 60 days after the 
delivery of a request for consultations under paragraph 1, the Parties may agree at any 
time to refer the matter to the Joint Comm ittee pursuant to Article 21.6 (Referral of 
Matters to the Joint Committee). WT/REG184/1 
Page 194  
 
5. Articles 21.2 (Scope of Application) and 21.5 shall not apply to a matter arising under any 
provision of this Chapter other than Article 18.2.1(a). 
Article 18.7 
 
Definitions
 
 
 For the purposes of this Chapter,  1. internationally recognised labour principles and rights  means: 
(a) the right of association; 
(b) the right to organize and bargain collectively; 
(c) a prohibition on the use of any form of forced or compulsory labour; 
(d) labour protections for children and young people, including a minimum age for the 
employment of children and the prohibition and elimination of the worst forms of child labour;
18-1 and 
(e) acceptable conditions of work with respect to minimum wages, hours of work, and 
occupational safety and health. 
2. labour laws  means: 
(a) for the United States, acts of the Congress, regulations promulgated pursuant to an act 
of Congress, or provisions of such acts or re gulations, where such acts, regulations, or 
provisions are directly related to intern ationally recognised labour principles and 
rights and are enforceable by action of the federal government;  
(b) for Australia, acts of a parliament of Aust ralia, or regulations promulgated pursuant 
to such acts, directly related to internati onally recognised labour principles and rights. 
 
CHAPTER NINETEEN: ENVIRONMENT 
 
Article 19.1 
 
Levels Of Protection  
  Recognizing the right of each Party to establis h its own levels of environmental protection 
and environmental development priorities, and to ad opt or modify accordingly its environmental laws 
and policies, each Party shall ensure that its laws provide for and encourage high levels of 
environmental protection and shall strive to c ontinue to improve their respective levels of 
environmental protection, including through such environmental laws and policies. 
 
                                                     
 
18-1 Australia provides labour protections for children and young people primarily through laws and 
regulations that regulate age levels for compulsory education.  WT/REG184/1 
 Page 195 
 
 
Article 19.2 
 
Application And Enforcement Of Environmental Laws  
 1. (a) A Party shall not fail to effectively enforce its environmental laws, through a 
sustained or recurring course of action or inaction, in a manner affecting trade 
between the Parties, after the date of entry into force of this Agreement.  
(b) The Parties recognise that each Party retain s the right to exercise discretion with 
respect to investigatory, prosecutorial, regulatory, and compliance matters and to 
make decisions regarding the allocation of resources to enforcement with respect to 
other environmental matters determined to have higher priorities. Accordingly, the 
Parties understand that a Party is in co mpliance with sub-paragraph (a) where a 
course of action or inaction reflects a reasonabl e exercise of such discretion, or results 
from a bona fide  decision regarding the allocation of resources.  
2. The Parties recognise that it is inappropriate to  encourage trade or investment by weakening 
or reducing the protections afforded in their resp ective environmental laws. Accordingly, each Party 
shall strive to ensure that it does not waive or othe rwise derogate from, or o ffer to waive or otherwise 
derogate from, such laws in a manner that weakens or reduces the protections afforded in those laws 
as an encouragement for trade with the other Part y, or as an encouragement for the establishment, 
acquisition, expansion, or retention of an investment in its territory. 
Article 19.3 
 
Procedural Guarantees And Public Awareness
 
 1. Each Party shall ensure that judicial, quasi-j udicial, or administrative proceedings for the 
enforcement of its environmental laws are fair, e quitable, transparent, and provide for appropriate 
administrative and procedural protections in accordance with its law. 
2. Each Party shall ensure that persons with a legally recognised interest under its law in a 
particular matter have appropriate access to  proceedings referred to in paragraph 1.  
3. Each Party shall provide remedies for violati ons of its environmental laws to ensure the 
effective enforcement of those laws. The Parties rec ognise that a variety of activities can contribute to 
enforcement of environmental laws. 
4. Each Party shall promote public awareness of its environmental laws by ensuring that 
information is available to the public regard ing its environmental laws and enforcement and 
compliance procedures, including procedures for inter ested persons to request the Party’s competent 
authorities to investigate alleged violations of it s environmental laws. A Party may use a variety of 
means available for this purpose,  such as publishing information and notices in official bulletins and 
the mass media, publishing and distributing info rmation manuals, undertaking compliance assistance 
programs, conducting meetings, and making information available through the Internet. 
5. For greater certainty, nothing in this Chapter sh all be construed as calling for the examination 
under this Agreement of whether a Party’s court has appropriately applied that  Party’s environmental 
laws. WT/REG184/1 
Page 196  
 
Article 19.4 
 
Voluntary Mechanisms To Enha nce Environmental Performance
 
  The Parties recognise that flexible, voluntary, and market-based mechanisms can contribute to 
the achievement and maintenance of high levels of environmental protection. As appropriate and in 
accordance with its law, each Party shall encourag e the development of such mechanisms, which may 
include partnerships, sharing in formation, and market-based m echanisms that encourage the 
protection of natural resources and the environment.  
Article 19.5 
 
Institutional Arrangements And Public Participation
 
 1. In carrying out its functions, the Joint Comm ittee established under Chapter 21 (Institutional 
Arrangements and Dispute Settlement) shall consider ma tters related to the operation of this Chapter 
and the pursuit of the environmental objectives of this Agreement. The Joint Committee may establish 
a Subcommittee on Environmental Affairs comprising go vernment officials of each Party, to meet at 
such times as they deem appropriate to discuss th e operation of this Chapter. Each meeting of the 
Subcommittee normally shall include a public session. 
2. Each formal decision of the Parties concerning the operation of this Chapter shall be made 
public, unless the Joint Comm ittee decides otherwise.  
3. Each Party shall provide an opportunity for its  public, which may include national advisory 
committees, to provide views, recommendations, or advice on matters related to the implementation 
of this Chapter, and shall make available such views, recommendations, or advice to the other Party 
and, as appropriate, to the public in accordance with its law. 
Article 19.6 
 
Environmental Cooperation
 
 1. The Parties recognise the importance of strengthening capacity to protect the environment and 
to promote sustainable development in concert w ith strengthening bilateral trade and investment 
relations. Toward this end, the Parties acknow ledge the importance of ongoing joint bilateral, 
regional, and multilateral environmental activities. The Parties agree to negotiate a United States–
Australia Joint Statement on Environmental Coopera tion under which the Parties will explore ways to 
further support these ongoing activities. 
2. Each Party shall take into account, as appropr iate, public comments and recommendations it 
receives regarding these ongoing cooperative environm ental activities undertaken by the Parties. 
3. The Parties shall, as appropriate, share inform ation with each other and the public regarding 
their experiences in assessing and taking into account  the positive and negative environmental effects 
of trade agreements and policies. 
Article 19.7 
 
Environmental Consultations
 
 1. A Party may request consultations with the other Party regarding any matter arising under this 
Chapter. Unless the Parties agree otherwise, cons ultations shall commence within 30 days after a  WT/REG184/1 
 Page 197 
 
 
Party delivers a request for consultations to the co ntact point designated by the other Party for this 
purpose. 
2. The Parties shall make every attempt to arrive at a mutually satisfactory resolution of the 
matter and may seek advice or assistance from any person or body they deem appropriate.  
3. If the consultations fail to resolve the matter, either Party may request that the Subcommittee 
on Environmental Affairs be convened. The Subcomm ittee shall convene within 30 days after a Party 
delivers a written request to the other Party’s cont act point, unless the Parties agree otherwise. If the 
Joint Committee has not established the Subcommittee as  of the date a Party delivers a request, it shall 
do so during the 30-day period described in this paragraph. The Subcommittee shall endeavour to 
resolve the matter expeditiously, including, where appropriate, by consulting governmental or non-
governmental experts and by having recourse to such procedures as good offices, conciliation, or 
mediation. 
4. If a Party considers that the other Party has fa iled to carry out its obligations under Article 
19.2.1(a), the Party may request consultations under paragraph 1 or pursuant to Article 21.5 
(Consultations). 
(a) If a Party requests consultations pursuant to Article 21.5 at a time when the Parties 
are engaged in consultations on the sa me matter under paragraph 1 or the 
subcommittee is endeavouring to resolve the matter under paragraph 3, the Parties 
shall discontinue their efforts to resolve the matter under this Article. Once consultations have begun unde r Article 21.5, no consultations on the same matter 
may be entered into under this Article. 
(b) If a Party requests consultations pursuant to Article 21.5 more than 60 days after the 
delivery of a request for consultations under paragraph 1, the Parties may agree at any 
time to refer the matter to the Joint Comm ittee pursuant to Article 21.6 (Referral of 
Matters to the Joint Committee).  
5. Articles 21.2 (Scope of Application) and 21. 5 (Consultations) shall not apply to a matter 
arising under any provision of this Chapter other than Article 19.2.1(a). 
Article 19.8 
 
Relationship To Environmental Agreements
 
  The Parties recognise that multilateral environmen tal agreements to which they are both party 
play an important role, globally and domestically , in protecting the environment and that their 
respective implementation of these agreements is cr itical to achieving the environmental objectives of 
these agreements. Accordingly, the Parties shall continue to seek means to enhance the mutual 
supportiveness of multilateral environmental agr eements to which they are both party and 
international trade agreements to which they are bot h party. The Parties shall consult regularly with 
respect to negotiations in the WTO regard ing multilateral envir onmental agreements. 
 
Article 19.9 
 
Definitions
 
 
 For the purposes of this Chapter: 
 WT/REG184/1 
Page 198  
 
1. environmental law  means any statute or regulation of a Party, or provision thereof, the 
primary purpose
19-1 of which is the protection of the environment, or the prevention of a danger to 
human, animal, or plant life or health, through: 
(a) the prevention, abatement, or control of the release, discharge, or emission of 
pollutants or environmental contaminants; 
(b) the control of environmentally hazardous or toxic chemicals, substances, materials, 
and wastes, and the dissemination of information related thereto; or  
(c) the protection or conservation of wild fl ora or fauna, including endangered species, 
their habitat, and specially protected natural areas,  
in areas with respect to which a Party exercises sove reignty, sovereign rights, or jurisdiction, but does 
not include any statute or regulation, or provision th ereof, directly related to worker safety or health. 
2. For the United States, statute or regulation  means an act of Congress or regulation 
promulgated pursuant to an act of Congress that is  enforceable by action of the federal government. 
 
CHAPTER TWENTY: TRANSPARENCY 
 
Article 20.1 
 
Contact Points  
 1. Each Party shall designate a contact point or points to facilitate communications between the 
Parties on any matter covered by this Agreement.  
2. On the request of the other Party, a Party’s co ntact point shall identify the office or official 
responsible for the matter and assist, as necessary, in facilitating communications with the requesting 
Party. 
Article 20.2 
 
Publication
 
 1. Each Party shall ensure that its laws, regulati ons, procedures, and administrative rulings of 
general application respecting any matter covered by this Agreement are promptly published or 
otherwise made available in such a manner as to en able interested persons and the other Party to 
become acquainted with them. 
2. To the extent possible, each Party shall: 
(a) publish in advance any such laws, regulati ons, procedures, and administrative rulings 
that it proposes to adopt; and 
(b) provide interested persons and the other Party a reasonable opportunity to comment 
on such proposed measures. 
                                                     
 
19-1 For the purposes of this Article, the primary purpose of a particular statutory or regulatory 
provision shall be determined by reference to its primary purpose, rather than to the primary purpose of the statute or regulation of which it is part. A particular provision whose primary purpose is not the protection of the 
environment or the prevention of a danger to human, animal, or plant life or health is not an environmental law 
as defined by this Article.  WT/REG184/1 
 Page 199 
 
 
Article 20.3 
 
Notification And Provision Of Information  
 1. To the maximum extent possible, each Party sha ll notify the other Party of any proposed or 
actual measure that the Party considers might materi ally affect the operation of this Agreement or 
otherwise substantially affect the other Party’s interests under this Agreement.  
2. On request of the other Party, a Party sha ll promptly provide information and respond to 
questions pertaining to any actual or proposed me asure that the requesting Party considers might 
materially affect the operation of this Agreement or  otherwise substantially affect its interests under 
this Agreement, regardless of whether the request ing Party has been previously notified of that 
measure. 
3. Any notification, request, or information under this Article shall be provided to the other 
Party through the relevant contact points. 
4. Any notification or information provided under this Article shall be without prejudice as to 
whether the measure in question is consistent with this Agreement. 
Article 20.4 
 
Administrative Agency Processes
20-1 
  With a view to administering its laws, regula tions, procedures, and administrative rulings of 
general application respecting any matter covered by this Agreement in a consistent, impartial, and 
reasonable manner, each Party shall ensure that its ad ministrative agencies, in applying such measures 
to particular persons, goods, or services of the other Party in specific cases through adjudication, 
rulemaking, licensing, determination, and approval processes:  
(a) provide, wherever possible, persons of the other Party that are directly affected by an 
agency’s processes reasonable notice, in acco rdance with domestic procedures, when 
a process is initiated, including a description of the nature of the relevant process, a 
statement of the legal aut hority under which the process is initiated, and a general 
description of any issues in controversy; 
(b) afford such persons a reasonable opportunity to present facts and arguments in 
support of their positions prior to any fina l administrative action, when time, the 
nature of the process, and the public interest permit; and 
(c) follow procedures that are in  accordance with its law. 
Article 20.5 
 
Review And Appeal
 
 1. Each Party shall maintain judicial, quasi-judicial , or administrative tribunals or procedures for 
the purpose of the prompt review
20-2 and, where warranted, correction of final administrative actions 
                                                      
20-1 For avoidance of doubt, “wherever possible” shall not be construed as requiring a Party to provide 
treatment in relation to persons, goods, or services of th e other Party that is more favourable than that which the 
Party provides to its own persons, goods, or services. 
20-2 For avoidance of doubt, ‘review’ includes merits (de novo) review only where provided for under 
the Party’s law. WT/REG184/1 
Page 200  
 
regarding matters covered by  this Agreement. Such tribunals sha ll be impartial and independent of the 
office or authority entrusted with administrative enforcement and shall no t have any substantial 
interest in the outcome of the matter.  
2. Each Party shall ensure that, in any such tribuna ls or procedures, the parties to the proceeding 
are provided with the right to: 
(a) a reasonable opportunity to support or  defend their respective positions; and 
(b) a decision based on the evidence and submissions of record or, where required by the 
Party’s law, the record compiled by the administrative authority.  
3. Each Party shall ensure, subject to appeal or fu rther review as provided in its law, that such 
decision shall be implemented by, and shall govern the practice of, the offices or authorities with 
respect to the administrative action at issue. 
Article 20.6 
 
Definitions
 
 
 For the purposes of this Chapter: 
  administrative ruling of general application  means an administrative ruling or 
interpretation that applies to all persons and fact situ ations that fall generally within its ambit and that 
establishes a norm of conduct, but does not include:  
(a) a determination or ruling made in an administrative or quasi-judicial proceeding that 
applies to a particular person, good, or serv ice of the other Party in a specific case; or 
(b) a ruling that adjudicates with respect to a particular act or practice. 
 
CHAPTER TWENTY-ONE: INSTITUTIONAL ARRANGEMENTS AND DISPUTE 
SETTLEMENT 
 
Section A : Institutional Arrangements And Administration
 
 
Article 21.1 
 
Joint Committee  
 1. The Parties hereby establish a Joint Committee to supervise the implementation of this 
Agreement and to review the trade relationship between the Parties. 
(a) The Joint Committee shall be composed of government officials of each Party and 
shall be co-chaired by (i) the United Stat es Trade Representative for the United States 
and (ii) the Minister for Trade for Au stralia, or their respective designees. 
(b) The Joint Committee may establish and delegate responsibilities to ad hoc  and 
standing committees, working groups, or other bodies, and seek the advice of non-governmental persons or groups. 
2. The Joint Committee shall:  WT/REG184/1 
 Page 201 
 
 
(a) review the general functioning of this Agreement; 
(b) review and consider specific matters relate d to the operation and implementation of 
this Agreement in the light of its objectives; 
(c) facilitate the avoidance and settlement of disputes arising under this Agreement, 
including through consultations pursuant to Articles 21.5 and 21.6; 
(d) consider and adopt any amendment to this  Agreement or other modification to the 
commitments therein, subject to completion of necessary legal procedures by each Party; 
(e) as appropriate, issue interpretations of the Agreement; 
(f) consider ways to further enhance trade rela tions between the Parties and to further the 
objectives of this Agreement; and 
(g) take such other action as the Parties may agree. 
3. Unless the Parties agree otherwise,  the Joint Committee shall convene: 
(a) in regular session every year to review th e general functioning of the Agreement and 
such other issues as the Parties may agree, w ith such sessions to be held alternately in 
the territory of each Party; and 
(b) in special session within 30 days of the re quest of a Party, with such sessions to be 
held in the territory of the other Party or  at such location as may be agreed by the 
Parties. 
4. The Joint Committee shall adopt its own rules of procedure. 
5. Each Party shall treat any confidential informa tion exchanged in relation to a meeting of the 
Joint Committee or any body created under Article 21.1.1(b) on the same basis as the Party providing 
the information. 
6. Recognizing the importance of transparency and openness, the Parties affirm their respective 
practices of considering the views of members of the public in order to draw on a broad range of 
perspectives in the implementation of this Agreement. 
7. At its first meeting, the Joint Committee sh all consider each Party’s review of the 
environmental effects of this Ag reement and shall provide the public  an opportunity to provide views 
on those effects. 
Section B: Dispute Settlement Proceedings
 
 
Article 21.2 
 
Scope Of Application  
 
 Except as otherwise provided in this Agreement or as the Parties otherwise agree, the dispute 
settlement provisions of this Section shall apply wi th respect to the avoidance or settlement of all 
disputes between the Parties regarding the interpretati on or application of this Agreement or wherever 
a Party considers that:  WT/REG184/1 
Page 202  
 
(a) a measure of the other Party is inconsistent  with its obligations under this Agreement; 
(b) the other Party has otherwise failed to carry out its obligations under this Agreement; 
or 
(c) a benefit the Party could reasonably have e xpected to accrue to it under Chapters Two 
(National Treatment and Market Access for Goods), Three (Agriculture), Five (Rules 
of Origin), Ten (Cross-Border Trad e in Services), Fifteen (Government 
Procurement), or Seventeen (Intellectual Property Rights) is being nullified or 
impaired as a result of a measure that is not inconsistent with this Agreement. 
Article 21.3 
 
Administration Of Dispute Settlement Proceedings
 
 1. Each Party shall: 
(a) designate an office that shall be responsib le for providing administrative assistance to 
panels established under Article 21.7; 
(b) be responsible for the operation and costs of its designated office; and 
(c) notify the other Party of the location of its designated office. 
2. The Joint Committee shall establish the amounts of remuneration and expenses to be paid to 
panellists. 
3. The remuneration of panellists, their travel a nd lodging expenses, and all general expenses 
relating to proceedings of a panel established under Ar ticle 21.7 shall be borne equally by the Parties. 
4. Each panellist shall keep a record and rende r a final account of the panellist’s time and 
expenses, and the panel shall keep a record a nd render a final account of all general expenses. 
Article 21.4 
 
Choice Of Forum
 
 
1. Where a dispute regarding any matter arises under this Agreement a nd under another trade 
agreement to which both Parties are party, includi ng the WTO Agreement, the complaining Party may 
select the forum in which to settle the dispute. 
2. Once the complaining Party has requested a panel under an agreement referred to in 
paragraph 1, the forum selected shall be used to the exclusion of the others.  
Article 21.5 
 
Consultations  
 1. Without prejudice to the provisions of Articles 18.6 (Labour Consultations) and 19.8 
(Environment Consultations), either Party may request  consultations with the other Party with respect 
to any matter it considers might affect the ope ration of this Agreement by delivering written 
notification to the other Party’s office designated un der Article 21.3. If a Party requests consultations 
with respect to a matter, the other Party shall reply promptly to the request for consultations and enter 
into consultations in good faith.  WT/REG184/1 
 Page 203 
 
 
2. In consultations under this Article, a Party ma y request the other Party to make available 
personnel of its government agencies or other regul atory bodies who have expertise in the matter 
subject to consultations. 
3. In the consultations, each Party shall: 
(a) provide sufficient information to enable a full examination of how the matter subject 
to consultations might affect the operation of this Agreement; and  
(b) treat any confidential information exchange d in the course of consultations on the 
same basis as the Party pr oviding the information. 
4. Promptly after requesting or receiving a request  for consultations pursuant to this Article, 
each Party shall solicit and consider the views of me mbers of the public on the matter in order to draw 
on a broad range of perspectives. 
Article 21.6 
 
Referral Of Matters To The Joint Committee  
 
 If the consultations fail to resolve the matter within 60 days of the delivery of a Party’s 
request for consultations under Article 21.5, or 20 days where the matter concerns perishable goods, 
either Party may refer the matter to the Joint Co mmittee by delivering written notification to the other 
Party’s office designated under Article 21.3. The Joint Committee shall endeavour to resolve the 
matter.  
Article 21.7 
 
Establishment Of Panel
 
 1. If the Joint Committee has not resolved a matter within 60 days after delivery of the 
notification described in Article 21.6, within 30 da ys where the matter concerns perishable goods, or 
within such other period as the Parties may agree,  the complaining Party may refer the matter to a 
dispute settlement panel by delivering written notifi cation to the other Party’s office designated under 
Article 21.3. 
2. A Party may not refer a proposed measure to a dispute settlement panel.  
3. Unless the Parties agree otherwise: 
(a) The panel shall have three members. 
(b) Each Party shall appoint one panellist, in c onsultation with the other Party, within 30 
days after the matter has been referred to a panel. If a Party fails to appoint a panellist 
within such period, a panellist shall be selected by lot from the contingent list 
established under paragraph 4 to serve as th e panellist appointed by that Party. 
(c) The Parties shall endeavour to agree on a th ird panellist who shall serve as chair.  
(d) If the Parties are unable to agree on the chair within 30 days after the date on which 
the second panelist has been appointed, the chair shall be selected by lot from the contingent list established under paragraph 4. WT/REG184/1 
Page 204  
 
(e) The date of establishment of the panel shall be the date on which the chair is 
appointed. 
4. By the date of entry into force of this Agreem ent, the Parties shall establish a contingent list 
of ten individuals who are willing and able to ser ve as panellists. Individuals on the contingent list 
shall be appointed by agreement of the Parties for a minimum term of three years, and shall remain on 
the list until the Parties constitute a new contingent list. 
5. The panellists chosen pursuant to paragraph 3 and the individuals on the contingent list 
established pursuant to paragraph 4 shall: 
(a) be chosen strictly on the basis of objectivit y, reliability, and so und judgment and have 
expertise or experience in law, international trade, or the resolution of disputes arising 
under international trade agreements; 
(b) be independent of, and not be affiliated with or take instructions from, either Party 
and not have a conflict of interest or appearance thereof, as set forth in a code of conduct to be established by the Joint Committee; and 
(c) comply with the code of conduct. 
 In addition, in any dispute arising unde r Chapters Eighteen (Labour) or Nineteen 
(Environment), panellists other than those chosen by  lot from the contingent list shall have expertise 
or experience relevant to the subject matter under dispute.  
Article 21.8 
 
Rules Of Procedure
 
 1. The Parties shall establish by the date of entry into force of this Agreement model rules of 
procedure, which shall ensure: 
(a) a right to at least one hearing before the panel and that, subject to sub-paragraph (f), 
any such hearings shall be open to the public; 
(b) an opportunity for each Party to provi de initial and rebuttal submissions; 
(c) that each Party’s written submissions, written versions of its oral statement, and 
written responses to a request or questions fro m the panel shall be made public within 
ten days after they are submitted,  subject to sub-paragraph (f); 
(d) that the panel shall consider requests fro m nongovernmental persons or entities in the 
Parties’ territories to provide written views regarding the dispute that may assist the 
panel in evaluating the submissions and ar guments of the Parties and provide the 
Parties an opportunity to respond to such written views;  
(e) a reasonable opportunity for each Party to submit comments on the initial report 
presented pursuant to Article 21.9.1; and 
(f) the protection of confidential information.  
2. Unless the Parties otherwise agree, the panel shall follow the model rules of procedure and 
may, after consulting the Parties, adopt additional ru les of procedure not inconsistent with the model 
rules.  WT/REG184/1 
 Page 205 
 
 
3. On request of a Party, or on its own initiativ e, the panel may seek information and technical 
advice from any person or body that it deems appr opriate, provided that the Parties so agree and 
subject to such terms and conditions as the Parties may agree.  
Article 21.9 
 
Panel Report  
 1. Unless the Parties agree otherwise, the panel shall, within 180 days after the chair is 
appointed, present to the Parties an initial report co ntaining findings of fact, and its determination 
regarding: 
(a) whether the measure at issue is inconsistent  with the obligations of this Agreement; 
(b) whether a Party has otherwise failed to carry out its obligations un der this Agreement; 
or 
(c) whether a Party’s measure is causing nullif ication or impairment in the sense of 
Article 21.2(c); and 
(d) any other matter that the Parties have jo intly requested that the Panel address,  
as well as reasons for its fi ndings and determinations. 
2. The panel shall consider this Agreement in acco rdance with applicable rules of interpretation 
under international law as reflected in Articles 31 and 32 of the Vienna Convention on the Law of 
Treaties  (1969). It shall base its report on the relevant provisions of the Agreement and the 
submissions and arguments of the Parties. The panel may, at the request of the Parties, make 
recommendations for the resolution of the dispute. 
3. After considering any written comments by th e Parties on the initial report, the panel may 
modify its report and make any further examination it considers appropriate.  
4. The panel shall present a final report to the Par ties within 45 days of presentation of the initial 
report, unless the Parties otherwise agree. The Parti es shall release the final report to the public within 
15 days thereafter, subject to the protection of confidential information. 
Article 21.10 
 
Implementation Of The Final Report
 
 1. On receipt of the final report of a panel, th e Parties shall agree on the resolution of the 
dispute, which normally shall conform with the dete rminations and recommendations, if any, of the 
panel. 
2. If, in its final report, the panel determines that  a Party has not conformed with its obligations 
under this Agreement or that a Party’s measure is causing nullification or impairment in the sense of 
Article 21.2(c), the resolution, whenever possible,  shall be to eliminate the nonconformity or the 
nullification or impairment. WT/REG184/1 
Page 206  
 
Article 21.11 
 
Non-Implementation
 
 
1. If a panel has made a determination of the type  described in Article 21.10.2, and the Parties 
are unable to reach agreement on a resolution pursuant  to Article 21.10.1 with in 45 days of receiving 
the final report, or such other period as the Parties ag ree, the Party complained against shall enter into 
negotiations with the other Party with a view to developing mutually acceptable compensation. 
2. If the Parties: 
(a) are unable to agree on compensation within 30 days after the period for developing 
such compensation has begun, or 
(b) have agreed on compensation or on a resolution pursuant to Article 21.10 and the 
complaining Party considers that the other Party has failed to observe the terms of 
such agreement,  
the complaining Party may at any time thereafter pr ovide written notice to the office designated by the 
other Party pursuant to Article 21.3 that it intends to suspend the application to the other Party of 
benefits of equivalent effect. The notice shall spec ify the level of benefits that the Party proposes to 
suspend. Subject to paragraph 5, the complaining Party may begin suspending benefits 30 days after 
the later of the date on which it provides notice to  the other Party’s designated office under this 
paragraph or the panel issues its determina tion under paragraph 3, as the case may be. 
3. If the Party complained against considers that: 
(a) the level of benefits that the other Party has proposed to be suspended is manifestly 
excessive; or 
(b) it has eliminated the non-conformity or the nullification or impairment that the panel 
has found,  
it may, within 30 days after the complaining Part y provides notice under paragraph 2, request that the 
panel be reconvened to consider the matter. The Part y complained against shall deliver its request in 
writing to the office designated by the other Party pur suant to Article 21.3. The panel shall reconvene 
as soon as possible after delivery of the request to the designated office and shall present its 
determination to the Parties within 90 days afte r it reconvenes to review a request under either sub-
paragraph (a) or (b), or within 120 days for a re quest under both sub-paragra phs (a) and (b). If the 
panel determines that the level of benefits proposed  to be suspended is manifestly excessive, it shall 
determine the level of be nefits it considers to be of equivalent effect. 
4. The complaining Party may suspend benefits up to the level the panel has determined under 
paragraph 3 or, if the panel has not determined the level, the level the Party has proposed to suspend 
under paragraph 2, unless the panel ha s determined that the Party comp lained against has eliminated 
the non-conformity, or the nullification or impairment. 
5. The complaining Party may not suspend benefits  if, within 30 days after it provides written 
notice of intent to suspend benefits or, if the pa nel is reconvened under para graph 3, within 20 days 
after the panel provides its determination, the Part y complained against provides written notice to the 
other Party’s office designated pursuant to Artic le 21.3 that it will pay an annual monetary 
assessment. The Parties shall consult, beginning no later than ten days after the Party complained 
against provides notice, with a view to reachi ng agreement on the amount of the assessment. If the 
Parties are unable to reach an agreement within 30 days after consultations begin, the amount of the  WT/REG184/1 
 Page 207 
 
 
assessment shall be set at a level, in U.S. dollars, equal to 50 percent of the level of the benefits the 
panel has determined under paragraph 3 to be of equivalent effect or, if the panel has not determined 
the level, 50 percent of the level that the comp laining Party has proposed to suspend under    
paragraph 2.  
6. Unless the Joint Committee decides otherwise, a monetary assessment shall be paid to the 
complaining Party in U.S. currency, or in an e quivalent amount of Australian currency, in equal, 
quarterly instalments beginning 60 days after the Pa rty complained against gives notice that it intends 
to pay an assessment. Where the circumstances wa rrant, the Joint Committee may decide that an 
assessment shall be paid into a fund established by  the Joint Committee and expended at the direction 
of the Joint Committee for appropriate initiatives to f acilitate trade between the Parties, including by 
further reducing unreasonable trade barriers or by assisting a Party in carrying out its obligations 
under the Agreement.  
7. If the Party complained against fails to pay a monetary assessment, the complaining Party 
may suspend the application to the Party complained  against of benefits in accordance with    
paragraph 4. 
8. This Article shall not apply with respect to a matter described in Article 21.12.1.  
Article 21.12 
 
Non-Implementation In Certain Disputes  
 1. If, in its final report, a panel determines that  a Party has not conformed with its obligations 
under Article 18.2.1(a) or Article 19.2.1(a), and the Parties: 
(a) are unable to reach agreement on a resoluti on pursuant to Article 21.10.1 within 45 
days of receiving the final report; or 
(b) have agreed on a resolution pursuant to Article 21.10.1 and the complaining Party 
considers that the other Party has failed to  observe the terms of the agreement,  
the complaining Party may at any time thereafter request that the panel be reconvened to impose an 
annual monetary assessment on the other Party. The complaining Party shall deliver its request in 
writing to the office designated by the other Party pur suant to Article 21.3. The panel shall reconvene 
as soon as possible after delivery of th e request to the designated office. 
2. The panel shall determine the amount of the m onetary assessment in U.S. dollars within 90 
days after it reconvenes under paragraph 1. In de termining the amount of the assessment, the panel 
shall take into account: 
(a) the bilateral trade effects of the Party’s failu re to effectively enforce the relevant law; 
(b) the pervasiveness and duration of the Part y’s failure to effectively enforce the 
relevant law; 
(c) the reasons for the Party’s failure to e ffectively enforce the relevant law;  
(d) the level of enforcement that could reasona bly be expected of the Party given its 
resource constraints; 
(e) the efforts made by the Party to begin remedying the non-enforcement after the final 
report of the panel; and WT/REG184/1 
Page 208  
 
(f) any other relevant factors. 
 The amount of the assessment determined by  the Panel shall not exceed 15 million U.S. 
dollars annually, adjusted for inflation as specified in Annex 21-A.  3. On the date on which the panel determines the amount of the monetary assessment under 
paragraph 2, or at any other time thereafter, the complaining Party may provide notice in writing to 
the office designated by the Party complained agai nst pursuant to Article 21.3 demanding payment of 
the monetary assessment. The monetary assessment sh all be payable in U.S. currency, or in an 
equivalent amount of Australian currency, in equal, quarterly instalments beginning 60 days after the 
complaining Party provides such notice. Each of the first four quarterly instalments shall be equal to 
one quarter of the monetary assessment determined  by the panel under Article 21.12.2. The fifth 
quarterly instalment and subsequent quarterly instalme nts shall be adjusted for inflation as specified in 
Annex 21-A. 
4. Assessments shall be paid into a fund est ablished by the Joint Committee and shall be 
expended at the direction of the Joint Committee fo r appropriate labour or environmental initiatives, 
including efforts to improve or e nhance labour or environm ental law enforcement, as the case may be, 
in the territory of the Party complained against, c onsistent with its law. In deciding how to expend 
monies paid into the fund, the Joint Committee shall consider the views of interested persons in each 
Party’s territory. 
5. If the Party complained against fails to pa y a monetary assessment, and if the Party has 
created and funded an escrow account to ensure paymen t of any assessments against it, the other Party 
shall, before having recourse to any other meas ure, seek to obtain the funds from the account. 
6. If the complaining Party cannot obtain the funds  from the other Party’s escrow account within 
30 days of the date on which payment is due, or if  the other Party has not created an escrow account, 
the complaining Party may take ot her appropriate steps to collect the assessment or otherwise secure 
compliance. These steps may include suspending tari ff benefits under the Agreement as necessary to 
collect the assessment, while bearing in mind the Agreement’s objective of eliminating barriers to 
bilateral trade and while seeking to avoid unduly affec ting parties or interests not party to the dispute. 
Article 21.13 
 
Compliance Review
 
 
1. Without prejudice to the procedures set out in Article 21.11.3, if the Party complained against 
considers that it has eliminated the non-conformity or the nullification or impairment that the panel 
has found, it may refer the matter to the panel by  providing written notice to the office designated by 
the other Party pursuant to Article 21.3. The pane l shall issue its report on the matter within 90 days 
after the Party complained against provides notice. 
2. If the panel decides that the Party complained against has eliminated the non-conformity or 
the nullification or impairment, the complaining Pa rty shall promptly reinstate any benefits it has 
suspended under Article 21.11 or 21.12, and the Pa rty complained against shall no longer be required 
to pay any monetary assessment it has agreed to pa y under Article 21.11.5 or that has been imposed 
on it under Article 21.12.  WT/REG184/1 
 Page 209 
 
 
Article 21.14 
 
Five-Year Review  
  The Joint Committee shall review the operation and effectiveness of Articles 21.11 and 21.12 
not later than five years after the Agreement enters in to force, or within six months after benefits have 
been suspended or monetary assessments have been imposed in five proceedings initiated under this 
Chapter, whichever occurs first.  
Article 21.15 
 
Private Rights
 
  Neither Party may provide for a right of acti on under its domestic law against the other Party 
on the ground that a measure of the other Part y is inconsistent with this Agreement. 
 
 
ANNEX 21-A 
 
INFLATION ADJUSTMENT FORMULA FOR MONETARY ASSESSMENTS 
 
1. Beginning on the date of entry into force of this Agreement through December 31, 2005, the 
annual monetary assessment determined by a pane l under Article 21.12.2 shall not exceed 15 million 
U.S. dollars. 
2. Beginning January 1, 2006, the annual moneta ry assessment determined by a panel under 
Article 21.12.2 shall not exceed the amount of “A ” calculated according to the following formula: 
 
 A =  US$15 million x (1+ 
i) 
  where  
i =  accumulated U.S. inflation rate (as measured by the Producer Price Index for 
Finished Goods published by the U.S. Bureau  of Labor Statistics) from calendar year 
2004 through the calendar year for which data are available immediately preceding the one in which the assessment is determined.  
 3. The fifth quarterly instalment and subsequent quarterly installments referred to in Article 
21.12.3 shall be the amount “C” calculated according to the following formula: 
 C = B x (1+ i)/4 
  where   B =  the assessment determined by the Panel. 
 
 
i =  accumulated U.S. inflation rate (as measured by the Producer Price Index for 
Finished Goods published by the U.S. Bur eau of Labor Statistics) from the calendar 
year immediately preceding the one in wh ich the assessment was determined through 
the calendar year for which data are av ailable immediately preceding the one in 
which the quarterly instalment is owed.  
  WT/REG184/1 
Page 210  
 
CHAPTER TWENTY-TWO: GENERAL PROVISIONS AND EXCEPTIONS 
 
Article 22.1 
 
General Exceptions
 
 
1. For the purposes of Chapters Two through Eigh t (National Treatment and Market Access for 
Goods, Agriculture, Textiles, Rules of Origin, Cust oms Administration, Sanitary and Phytosanitary 
Measures, and Technical Barriers to Trade), GATT 1994 Article XX and its interpretive notes are incorporated into and made part of this Agreement, mutatis mutandis . The Parties understand that the 
measures referred to in GATT 1994 Article XX(b) include environmental measures necessary to 
protect human, animal, or plant life or health, a nd that GATT 1994 Article XX(g) applies to measures 
relating to the conservation of living an d nonliving exhaustible natural resources. 
2. For the purposes of Chapters Ten, Twelve, a nd Sixteen (Cross Border Trade in Services, 
Telecommunications, and Electronic Commerce), GA TS Article XIV (including its footnotes) is 
incorporated into and made part of this Agreement, mutatis mutandis . The Parties understand that the 
measures referred to in GATS Article XIV(b) include environmental measures necessary to protect human, animal, or plant life or health. 
Article 22.2 
 
Essential Security
 
 
 Nothing in this Agreem ent shall be construed: 
 
(a) to require a Party to furnish or allow access to any information the disclosure of 
which it determines to be contrary to its essential security interests; or  
(b) to preclude a Party from applying measure s that it considers necessary for the 
fulfilment of its obligations with respect  to the maintenance or restoration of 
international peace or security, or the prot ection of its own essential security interests. 
Article 22.3 
 
Taxation  
 
1. Except as set out in this Article, nothing in th is Agreement shall apply to taxation measures. 
2. (a) Nothing in this Agreement shall affect th e rights and obligations of either Party under 
any tax convention. In the event of any inconsistency between this Agreement and 
any such convention, that convention shall pr evail to the extent of the inconsistency. 
(b) In the case of a tax convention between the Parties the competent authorities under 
that convention shall have sole res ponsibility for determining whether any 
inconsistency exists be tween this Agreement and that convention. 
3. Notwithstanding paragraph 2: 
(a) Article 2.2 (National Treatment) and such ot her provisions of this Agreement as are 
necessary to give effect to that Article sh all apply to taxation measures to the same 
extent as does GATT 1994 Article III; and  
(b) Article 2.11 (Export Taxes) shall apply to taxation measures.  WT/REG184/1 
 Page 211 
 
 
4. Subject to paragraph 2: 
(a) Article 10.2 (National Treatment), Articl e 13.2 (National Treatment), and Article 
13.5.1 (Cross-Border Trade) shall appl y to taxation measures on income, capital 
gains, or on the taxable capital of cor porations that relate to the purchase or 
consumption of particular services, except that nothing in this sub-paragraph shall 
prevent a Party from conditioning the receipt or continued receipt of an advantage 
relating to the purchase or consumption of particular services on requirements to provide the service in its territory;
22-1 and 
(b) Articles 11.3, 11.4 (Most-Favoured-Nation Treatment), 10.2 (National Treatment), 
10.3 (Most-Favoured-Nation Treatment),  13.2, 13.3 (Most-Favoured- Nation 
Treatment), and 13.5.1 shall apply to all taxation measures, other than those on 
income, capital gains, or on the taxable cap ital of corporations, taxes on estates, 
inheritances, gifts, and generation-skipping transfers;  
except that nothing in those Articles shall apply:  (c) any most-favoured-nation obligation in this Agreement with respect to an advantage 
accorded by a Party pursuant to a tax convention; 
(d) to a non-conforming provision of any existing taxation measure; 
(e) to the continuation or prompt renewal of  a non-conforming provision of any existing 
taxation measure; 
(f) to an amendment to a non-conforming provi sion of any existing taxation measure to 
the extent that the amendment does not d ecrease its conformity, at the time of the 
amendment, with any of those Articles; 
(g) to the adoption or enforcement of any taxation measure aimed at ensuring the 
equitable or effective imposition or collec tion of taxes (as permitted by GATS Article 
XIV(d) without regard to the limitation in Article XIV(d) to direct taxes); or 
(h) to a provision that conditions the receipt,  or continued receipt of an advantage 
relating to the contributions to, or income of, a pension trust, superannuation fund, or 
other arrangement to provide pension, s uperannuation, or similar benefits on a 
requirement that the Party maintain continuous  jurisdiction, regulation, or supervision 
over such trust, fund, or other arrangement.  
5. Subject to paragraph 2 and without prejudice to the rights and obligations of the Parties under 
paragraph 3, paragraphs 2, 3, and 4 of Article 11.9 (Performan ce Requirements) shall apply to 
taxation measures. 
6. (a) Article 11.7 (Expropriation and Compensati on) shall apply to taxation measures.  
(b) Where a Party alleges in writing that a taxation measure of the other Party is an 
expropriation, that other Party’s desi gnated authority may request in writing 
consultations between the designated aut horities regarding whether a determination 
that the taxation measure is an expropriati on under this Agreement would give rise to 
                                                     
 
22-1 For the avoidance of doubt, nothing in this exception to the obligation imposed by sub-paragraph 
4(a) allows a Party to condition the r eceipt or continued receipt of an a dvantage relating to the purchase or 
consumption of particular services on the nationality of the service supplier.  WT/REG184/1 
Page 212  
 
an inconsistency with any tax convention between the Parties. Unless the designated 
authorities agree within sixty days after recei pt of the request for consultations (which 
period may be extended by mutual agreement of such designated authorities) that an 
inconsistency would arise in case of such determination, the Party alleging an 
expropriation may pursue the matter under Section B of Chapter 21 (Dispute 
Settlement Procedures). Notwithstanding sub-paragraph 2(b), the designated 
authorities shall have sole responsibility w ith respect to this issue of whether a 
determination that a taxation measure allege d by a Party to be an expropriation under 
this Agreement would give rise to an inc onsistency with any ta x convention between 
the Parties. 
(c) For the purposes of this paragraph, designated authority  means:  
(i) in the case of Australia, the Secretary to the Treasury or his authorised 
representative; and 
(ii) in the case of the United States, the As sistant Secretary of the Treasury (Tax 
Policy). 
7. For the purposes of this Article, taxes  and taxation measures  do not include any import or 
customs duties. 
Article 22.4 
 
Disclosure Of Information
 
 
1. Nothing in this Agreement shall be construed as requiring a Party to furnish or allow access to 
confidential information the disclosure of which would impede law enforcement or otherwise be 
contrary to the public interest22-2 or which would prejudice the legitimate commercial interests of 
particular enterprises, public or private. 
2. When a Party provides written information pursuan t to a request or a requirement under this 
Agreement and informs the other Party that it consider s the information to be of the type described in 
paragraph 1, the Party receiving the information sha ll not disclose or use the information for a purpose 
other than that for which it was requested or requi red, except where the disclosure or use is required 
or authorised pursuant to the receiving Party’s law and regulations or with the prior consent of the 
Party providing the information.  
Article 22.5 
 
Anti-Corruption  
  The Parties shall cooperate in seeking to e liminate bribery and corruption and to promote 
transparency in international trad e. They are committed to seeking av enues in relevant international 
fora to address bribery, corruption,  and transparency and to build on anti-corruption efforts in these 
fora.  
                                                     
 
22-2 For the purposes of this paragraph the public interest includes, for Australia, compliance with the 
Privacy Act (Cth) 1988.  WT/REG184/1 
 Page 213 
 
 
CHAPTER TWENTY-THREE: FINAL PROVISIONS 
 
Article 23.1 
 
Accession  
 
1. Any country or group of countries may accede to this Agreement subject to such terms and 
conditions as may be agreed between such country or countries and the Parties and following approval 
in accordance with the applicable legal procedures of each country.  
2. This Agreement shall not apply as between an y Party and any acceding country or group of 
countries if, at the time of the accession, either Party does not consent to such application. 
Article 23.2 
 
Annexes  
 
 The Annexes to this Agreement constitute an integral part of this Agreement. 
 
Article 23.3 
 
Amendments  
 
1. The Parties may agree, in writing, to amend th is Agreement. An amendment shall enter into 
force after the Parties complete any necessary intern al requirements and on such date as the Parties 
may agree. 
2. If any provision of the WTO Agreement that the Parties have incorporated into this 
Agreement is amended, the Parties will cons ult on whether to amend this Agreement. 
 
Article 23.4 
 
Entry Into Force And Termination  
 1. This Agreement shall enter into force 60 days after the date on which the Parties exchange 
written notifications certifying that they have co mpleted respective necessary internal requirements, 
or on such other date as the Parties may agree. 
2. A Party may terminate this Agreement by writte n notification to the other Party, and such 
termination shall take effect six months  after the date of the notification. 
3. Within 30 days of delivery of a notification under paragraph 2, either Party may request 
consultations regarding whether any provision of this Agreement shoul d terminate on a date later than 
that provided under paragraph 2. Consultations sha ll commence within 30 days after the Party delivers 
such a request. WT/REG184/1 
Page 214  
 
 IN WITNESS WHEREOF , the undersigned, being duly authorized by their respective 
Governments, have si gned this Agreement. 
  Done at Washington, D.C., in duplicate, this 18th day of May 2004.  
 
FOR THE GOVERNMENT OF THE  FOR THE GOVERNMENT UNITED STATES OF AMERICA:  OF AUSTRALIA: /s/ Robert B. Zoellick  /s/ Mark Vaile  
 
__________